AR goes from $200 to $400, inventory from $100 to $200, AP from $50 to $150. Revenue $2,000, COGS $1,000. Calculate the cash conversion cycle (365 days).

Question

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CCC = DSO + DIO - DPO. 75 days.

AR goes from $200 to $400, inventory from $100 to $200, AP from $50 to $150. Revenue $2,000, COGS $1,000. Calculate the cash conversion cycle (365 days).

Answer

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