Cash Conversion Cycle
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Westley Company's average age of accounts receivable is 90 days, the average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assuming a 365-day year, what is the length of its cash conversion cycle?
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Solution Summary
The solution provides formula to calculate cash conversion cycle along with a example.
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Cash Conversion Cycle (CCC) = Inventory conversion period + ...
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