EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 12, Problem 5DQ
Summary Introduction
Interpretation:Implications of a negative cash-to-cash conversion cycle are to be discussed.
Concept Introduction:Cash conversion cycle refers to the time it takes to a company to convert its investment in inventory into cash. A negative cash-to-cash conversion cycle means that the company spends less time in converting its inventory into cash when compared to the time that it has to pay for its suppliers.
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