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goldfiish [28.3K]
3 years ago
5

Metal Products Co. has an inventory period of 53 days, an accounts payable period of 68 days, and an accounts receivable turnove

r rate of 18. What is the length of the cash cycle?
Business
1 answer:
Rashid [163]3 years ago
8 0

Answer:

71 days

Explanation:

Length of cash cycle = days of inventory on hand + days of sales outstanding - days of payables

days of sales outstanding = number of days in the period / receivable turnover

360 / 18 = 20

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Pierce &amp; Company provides the following information concerning the work in process at its plant:
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