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    P16-11 Negus Cash Conversion Cycle

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    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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