XYZ Company has annual sales of $622531. The cost of goods sold are $317825. The firm...

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XYZ Company has annual sales of $622531. The cost of goods sold are $317825. The firm...

XYZ Company has annual sales of $622531. The cost of goods sold are $317825. The firm has an accounts receivable balance of $16073, an accounts payable balance of $21911 and inventory of $30330.

What is the lengh of time between paying for materials and collecting on receivables?That is, what is the cash conversion cycle? Assume 365 days.

business finance

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Answer 1

Answer #1

Cash conversion cycle=30330/(317825/365)+16073/(622531/365)-21911/(317825/365)

=19.0925

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Answer 2

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XYZ Company has annual sales of $622531. The cost of goods sold are $317825. The firm...