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5 The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods inventory turnover

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Answer #1

5. Pop Co's Cash Cycle = Days inventory on hand + Days sales outstanding - Days payables outstanding

= 23 + 3 + 24 - 28

= 22 Days

6.Working Capital Cycle = Inventory Days + Receivable Days - Payable Days

= 170+22-35

= 157 Days (Option A)

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