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Consider the following information for the question(s) below. Hammond Motors...
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Consider the following information for the question(s) below.Hammond Motors had sales of $35 million in 2020 with a cost of goods sold of $20 million. A simplified balance sheet for Hammond appears below (amounts in $ million):
Hammond's cash conversion cycle in 2020 is closest to:
| Assets | | | Liabilities and Equity | |
| Cash | 1.6 | | Accounts Payable | 1.8 |
| Accounts Receivable | 4.2 | | Notes Payable | 3.2 |
| Inventory | 3 | | Accruals | 1.5 |
| Current Assets | 8.8 | | Total Current Liabilities | 6.5 |
| | | | Long-term Debt | 4 |
| Net Property, Plant and Equipment | 8.2 | | Total Liabilities | 10.5 |
| | | Stockholders' Equity | 6.5 | |
| Total Assets | 17 | | Total Liabilities and Stockholders' Equity | 17 |
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