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Assume a Company Has $700,000 Worth of Inventory and Averages

Question 5

Multiple Choice

Assume a company has $700,000 worth of inventory and averages $10,000 per day in sales.Also assume it takes 30 days for the average customer to pay off its invoice to this company and it takes 120 days for the company to pay for the materials supplied by its suppliers.What is the company's average cash-to-cash cycle time?


A) 20 days.
B) 40 days.
C) -10 days.
D) -20 days.

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