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The cash inflows and outflows are created through accounts receivables from the customer then making payments to the suppliers. LS generate revenue by purchasing material from vendors and selling the materials to the customer. “The Asset Conversion Cycle usually referred to as the Cash Conversion Cycle or Cash Cycle is an important tool analysis that allows the credit analyst to determine more easily why and when the business needs more cash to operate, and when and how it will be able to repay the cash.” (Loan universe, 2008) “Sales become account receivables before they become cash. Cash flow comes from collections on accounts receivables...
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Common topics in this essay:
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