Question: Operating and conversion cycle Both of these tools are important for any manager to know as most business failures are due to poor working capital
Both of these tools are important for any manager to know as most business failures are due to poor working capital management. You are a manager for a medium sized company and have been given the following information: Your inventory turnover is 6 You have an average accounts receivable of $200,000 and sales of $1,200,000 Your accounts payable is $100,000 and your cost of goods sold is $800,000. What is your inventory period? What is your operating cycle? What is your cash conversion cycle? What does this tell you? Where can you improve
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