easy · Financial Accounting accounting-cycle-financial-statements
A firm has a Cash Conversion Cycle of 50 days (DIO=40, DSO=30, DPO=20).
If it negotiates better terms with suppliers, increasing DPO to 30 days while others remain constant, what is the new CCC?
- 20 days
- 60 days
- 40 days
- 50 days
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