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Top Hat Industries is trying to improve cash management. The company currently has the following information regarding its cash management: • Average inventories age is 120 days • Accounts Payable are paid 60 days from invoice date • Accounts Receivable are collected in 90 days • Annual sales are $25,000,000
What is Top Hat’s operating cycle?
What is Top Hat’s cash conversion cycle?
What is the resource amount needed to cover the cash conversion cycle?
How could management positively affect the cash conversion cycle?
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