What is the firm-s inventory conversion period
A firm has $5,000,000 of inventory on average and annual sales of $30,000,000. Assume there are 365 days per year. What is the firm's inventory conversion period?
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The average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assuming a 365-day year, what is the length of the firm's cash conversion cycle?
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