A small producer of agricultural products is severely capital constrained i.e It has very limited access to
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A small producer of agricultural products is severely capital constrained i.e It has very limited access to bank debt. It has maximized the use of small credit line and has on at least two occasions over the last 6 months been forced to defer payment of wages of key employees. On average the firm converts inventory to sales in 35 days , collects it's account receivable in 53 days and pays its suppliers in 26 days
What is the firm's conversion cycle?
An advice to the company with specific recommendations would you make to improve it working capital management!
Expert Answer:
Working Capital Management Analysis and Recommendations Conversion Cycle The conversion cycle measures the average time it takes a company to convert ... View the full answer
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