Question: Operating Cycle Everdeen Inc. has a 90-day operating cycle. If its average age of inventory is 35 days, how long is its average collection period?

Operating Cycle

Everdeen Inc. has a 90-day operating cycle. If its average age of inventory is 35 days, how long is its average collection period? If its average payment period is 30 days, what is its cash conversion cycle?

Operating cycle = Average age of inventory + Average collection period =____________

Average collection period = Operating cycle Average age of inventory = _____________

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