Adequate cash conversion cycle


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Cash conversion cycle= Inventory conversion period + Receivables conversion period - Payables deferred period = 120000/(600000/365) + 160000/(600000/365) -25000/(600000/365) =155 days=Answer

Question 1. What does the CCC value mean?

Question 2. Is this an adequate cash conversion cycle?

Question 3. Discuss the relationship between the cash conversion cylce and firm value.

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Accounting Basics: Adequate cash conversion cycle
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