ocr: Introduction This calculation is based on the fact that for some businesses (particularly those in manufacturing) stock - is not necessarily convertible into cash at very short notice. You can imagine that stock may siti in raw materials stores for some period of time betore being issued to the production line. Atter processing into a tinished good there could conceivably be a lengthy warehousing period betore the product tis finally sold. Many businesses need to offer credit terms to customers and this can turther increase the length of time which stretches between the payment tor raw materia ...
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