Which statements, values, formulas do I need in order to calculate the below cash conversion cycle ratios?
Cash is a current asset and considered as one of the important item in business operations. This can be used to purchase inventories and properties to ensure the continued operation of the company. Company aims to convert the Accounts receivables and inventories to cash faster that the payment dates of their liabilities.
Answer and Explanation: 1
Operating cycle of the company involves the conversion days of accounts receivables and inventories into cash. However, since these inventories are...
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fromChapter 22 / Lesson 42
An operating cycle consists of lead time, production time, sales time, delivery time, and cash-collection time. Learn the definitions of the parts of the operating cycle, how long the operation cycles are for different industries, and the formula used for calculating the operating cycle in accounting.