See attached file.
Cash Conversion Cycle. Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm:
Income statement data:
Cost of goods sold 4,200
Balance sheet data:
See the table in the attachment.© BrainMass Inc. brainmass.com March 4, 2021, 6:19 pm ad1c9bdddf
Accounts receivable period = Average receivables /Sales * 365
= ((100+120)/2)*365/5000 = 8.03 ...
The solution shows all the calculations that were used to arrive at the correct answers.