What is difference between operating cycle and cash cycle

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Reference no: EM13925027

1. What is the difference between operating cycle and cash cycle?

2. How do the following changes in working capital terms affect the cash conversion cycle:

(a) favourable credit terms that allow the firm to pay its trade creditors more slowly,

(b) increase in inventory turnover and (c) decrease in accounts receivable turnover?

Reference no: EM13925027

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