Problemnegus enerprises has aan inventory conversion, Ask an Expert

Accounting

Problem:

Negus Enerprises has aan inventory conversion period of 50 days, an average collection period of 35 days and a payable deferral period of 25 days. assume hat cost of goods sold is 80% of sales.

Required:

Question 1: What is the length of the firm's cash conversion cycle

Question 2: If Negus's annual sales are $4,380,000 and all sales are on credi, what is the firm's invesment in accounts payable

Question 3: How many times per year does Negus Ent. turn over its inventory

Note: Explain all steps comprehensively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172211

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