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Estimate the average length of the firm

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Question - Pretty Lady Cosmetics Products has an average production process time of forty days. Finished goods are kept on hand for 15 days before they are sold. Accounts receivable are outstanding an average of thirty five days and the firm receives forty days of credit on its purchasers from suppliers.

Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?

Reference no: EM133014641

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