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Working capital cycle (operating/trading/cash cycle)
It is the time between paying for goods supplied and final receipt of cash from their sale. It is desirable to keep cycle as short as possible:
Working capital cycle therefore must be kept to a minimum to ensure efficient and cost effective management.
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Harley Davidson purchases components from three suppliers. Components purchased from Supplier A are priced at $ 5 each and used at the rate of 240,000 units per year. Components pu
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