Estimate of the firms present cash conversion cycle

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You were recently hired as CFO to improve the performance of Dennis Systems, which is highly profitable but has been experiencing cash shortages due to its high rate of growth. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is your estimate of the firm's present cash conversion cycle?

Average inventory: $120,000

Annual sales: $600,000

Average accounts receivable: $160,000

Average accounts payable: $25,000

Total annual purchases: $365,000

Buy on net 30 days, no discounts: 30

Sell on net 50 days, no discounts: 50

Reference no: EM13731391

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