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Homework answers / question archive / camp manufacturing turns over its inventory 5 times each year, has an average payment period of 35 days, and has an average collection period of 60 days

camp manufacturing turns over its inventory 5 times each year, has an average payment period of 35 days, and has an average collection period of 60 days

Accounting

camp manufacturing turns over its inventory 5 times each year, has an average payment period of 35 days, and has an average collection period of 60 days. the firm has an annual sales are $3.5 million. and cost of good sold of $2.4 million

a. Calculate the firms operating cycle and cash conversion cycle.

b. What is the dollar value of inventory held by the firm?

c. If the firm could reduce the avarage age of its inventory from 73 days to 63 days, by how much would it reduce it's dollar investment in working capital?

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