Zocco corporation has an inventory conversion period of 75, Ask an Expert

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Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 38 days, and a payables deferral period of 30 days.

a. What is the length of the cash conversion cycle?

b. If Zocco's annual sales are $3,421,875 and all sales are on credit, what is the investment in accounts receivable?

c. How many times per year does Zocco turn over its inventory? Assume that cost of goods sold is 75% of sales.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9733591

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