EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 12, Problem 4PA
Summary Introduction
Interpretation:Cash to cash conversion cycle of the business is to be calculated along with the recommendations that can be made to improve performance.
Concept Introduction:Cash to cash conversion cycle measures the time that the company takes to convert its investments in inventory into cash. The less time it takes the more profits that the company may achieve. That means a negative cash flow will help the company in reaching a highest performance level.
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