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30 June, 07:51

GPR, Inc., has an inventory turnover of 18.42 times, a payables turnover of 10.93 times, and a receivables turnover of 8.24 times. What is the length of the company's cash cycle

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  1. 30 June, 09:07
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    Answer: 30.73 days

    Explanation:

    From the question, we are told that GPR, Inc., has an inventory turnover of 18.42 times, a payables turnover of 10.93 times, and a receivables turnover of 8.24 times. The length of the company's cash cycle for thus:

    Let's assume that there are 365 days in a year.

    The cash cycle will be:

    = (365/18.42) + (365/8.24) - (365/10.93)

    = 19.82 + 44.3 - 33.39

    = 30.73

    The length of the company's cash cycle is 30.73 days
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