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Cash Conversion Cycle (CCC)

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October 6th, 2022

Assume a firm’s production process requires an average of 75 days to go from raw materials to finished goods sold. If the accounts receivable cycle is 90 days and the accounts payable cycle is 80 days, what would the short-term operating cycle be (short term being the most important component of the entire operating cycle) ? hint: what is the CCC?

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