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Vancouver Sushi Limited Collects 35% of Its Monthly Sales Immediately

Question 47

Essay

Vancouver Sushi Limited collects 35% of its monthly sales immediately and the rest a month later.Its production costs are 60% of sales.It holds 1 month of sales in inventory, and it pays 60% its bills immediately and 40% after 30 days.Calculate the cash conversion cycle and the operating cycle for Vancouver Sushi Limited.

Correct Answer:

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Average collection period (ACP)= 0*.35 +...

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