Inventory conversion period of 50, Ask an Expert

Finance

P16-11 Negus Cash Conversion Cycle

Inventory conversion period of 50 days

Average collection period of 35 days

Payables deferral period of 25 days

Costs of goods sold is 80% of it's sales.

REQUIRED: Compute the cash conversion cycle.

REQUIRED: Annual credit sales are $4,380,000. What is the firm's investment in accounts receivable?

REQUIRED: How many times does it turn over it's inventory in a year?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9214740

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