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Calculate the number of days in the new cash cycle

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Question - ABC Company currently has a cash cycle of 254 days. The company went through a management change. The new management has changed the working capital policies for the company. The new policies will decrease the inventory period by 33 days, decrease the accounts receivable period by 40 days, and increase the accounts payable period by 16 days.

Calculate the number of days in the new cash cycle after the above changes become effective? That is, what is the new cash cycle?

Reference no: EM132480375

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