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A trigger strategy can be used
Operating Cycle
The duration of time it takes for a company to buy inventory, sell it, and convert it back into cash.
Current Liabilities
Obligations or debts that a company must pay within a year.
Operating Cycle
The operating cycle is the duration of time it takes for a company to purchase inventory, sell it, and convert the sales into cash.
Cash
A form of liquid asset that represents immediate purchasing power and can be used for transactions.
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