Its annual sales are 12000000 and its cost of good sold


Biondi manufacturing company (bmc) has an average accounts receivable balance of $1250000, an average inventory balance of $1750000, and an average accounts payable balance of $800000. Its annual sales are $12000000 and its cost of good sold represents 80 percent of annual sales. Assume there are 365 days in a year. What is bmc's cash conversion cycle and payables deferral period?

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Operation Management: Its annual sales are 12000000 and its cost of good sold
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