Cash Conversion Cycle
Not what you're looking for?
See the attached file.
The Zocco Corporation has an inventory conversion period of 79 days, a receivables collection period of 47 days, and a payables deferral period of 35 days.
Assume 365 days in year for your calculations.
a. What is the length of the firm's cash conversion cycle?
b. If Zocco's annual sales are $3,252,175 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar, if necessary. Enter your answer as a whole number. For example, do not enter 1,000,000 as 1 million.
c. How many times per year does Zocco turn over its inventory? Round the answer to the nearest hundredth.
Purchase this Solution
Solution Summary
The solution computes cash conversion cycle in a given scenario of Zocco corporation.
Purchase this Solution
Free BrainMass Quizzes
Motivation
This tests some key elements of major motivation theories.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.