AR goes from $50 to $150, inventory from $50 to $150, AP from $25 to $75. Revenue $2,000, COGS $1,000. Calculate the cash conversion cycle (365 days).

Question

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CCC = DSO + DIO - DPO. 25 days.

AR goes from $50 to $150, inventory from $50 to $150, AP from $25 to $75. Revenue $2,000, COGS $1,000. Calculate the cash conversion cycle (365 days).

Answer

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