Problem:

The saliford corporation has an inventory conversion period of 60 days, a receivables collection period of 36 days, and a payables deferral period of 24 days.

Required:

Question 1: What is the length of the firms cash conversion cycle?

Question 2: If salisford's annual sales are $3,960,000 and all sales are on credit, what is the average balance in accounts receivable?

Question 3: How many times per year does saliford turn over its inventory?

Question 4: What would happen to saliford's cash conversion cycle if, on average, inventories could be turned over eight times per year?

Note: Please explain comprehensively and give step by step solution.