Problemnegus enterprises has an inventory conversion period, Ask an Expert

Accounting

Problem:

Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and payables deferral period of 25 days. Assume that costs of goods sold is 80% of it's 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 credit, what is the firm's investment in accounts receivable?

Question 3: How many times per year does Negus Enterprises turn over it's inventory?

Note: Please provide full description.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172174

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