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    Cash conversion cycle :sample question

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    6) Cash Conversion Cycle - Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm:

    Income statement data:
    Sales 5,000
    Cost of goods sold 4,200

    Balance sheet data:
    Beginning of Year End of Year
    Inventory 500 600
    Accounts receivable 100 120
    Accounts payable 250 290

    Please see attached problem.

    © BrainMass Inc. brainmass.com June 3, 2020, 5:17 pm ad1c9bdddf
    https://brainmass.com/business/management-accounting/cash-conversion-cycle-sample-question-20351

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    6) Cash Conversion Cycle - Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm:

    Income statement data:
    Sales 5,000
    Cost of goods sold 4,200

    Balance sheet data:
    Beginning of Year End ...

    Solution Summary

    The solution calculates the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the firm.

    $2.19

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