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Working capital cycle for a trade
Inventories days (time inventories are held before being sold)
Plus
Trade receivables days (how long the credit customers take to pay)
Minus
Trade payables days (how long the company takes to pay its suppliers)
Equals
Working capital cycle (in days)
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Uses of operating cycle in business
Explain the re-measurement and translation process within FASB 52 of translating into the reporting currency the books of a completely owned affiliate that keeps its books in the l
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