P16-11 Negus Cash Conversion Cycle

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?

Solution Summary

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