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Business, 08.02.2021 19:20 amselah735

When comparing two companies, we notice that they are very similar in setup (e. g., same costs, same profit margins, same inventory turnovers etc.). However, the time it takes company A to pay for raw materials is longer than it takes company B, while the time it takes customers of company A to pay for the finished goods is shorter than it takes company B's customers. Which of these companies has a shorter cash flow cycle? a. Company B
b. They are both the same
c. Company A
d. Could be either, depending on the days in inventory

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