Whether the increase in firm’s cash cycle indicates that the firm is managing a poor cash management. Introduction: Cash cycle is also termed as cash conversion cycle that measures the time taken to convert the cash into stocks, accounts payable by the way of sales and accounts receivables and again back to cash.

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Chapter 26, Problem 2P

Summary Introduction

To discuss: Whether the increase in firm’s cash cycle indicates that the firm is managing a poor cash management.

Introduction:

Cash cycle is also termed as cash conversion cycle that measures the time taken to convert the cash into stocks, accounts payable by the way of sales and accounts receivables and again back to cash.

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