What Is the Length of the Cash Conversion Cycle for a Firm

question 107

Essay

What is the length of the cash conversion cycle for a firm with $50,000 in average inventory, $60,000 in average receivables, $30,000 in average payables, annual sales of $700,000, and a cost of goods sold of 75%?

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Definitions:

Semiperipheral Countries

Semi-industrialized countries that represent a kind of middle class within the world system.

Transnational Community

A social group that maintains connections extending beyond the borders of one nation, often sharing cultural, economic, or familial ties across countries.

Colonial Power

The control or governing influence of a nation over a dependent country, territory, or people, often involving exploitation and domination.

World Systems Theory

A sociological perspective that analyzes global inequalities by categorizing countries as core, semi-periphery, and periphery, focusing on the economic and political connections that shape global capitalism.