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Inventory Conversion Period & Average Collection Period

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Question 13
Kleck Corporation has $500,000 of inventory, and its annual sales are $3,000,000. Based on a 365 day year, what is Kleck's inventory conversion period?

a. 56.49 days
b. 57.04 days
c. 60.83 days
d. 62.81 days
e. 65.27 days

Question 14

Carroll Construction has annual sales of $730,000, and it has $100,000 of accounts receivable. Based on a 365-day year, what is Carroll's average collection period (or DSO)?

a. 50 days
b. 52 days
c. 54 days
d. 56 days
e. 58 days

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13 - Inventory conversion period = ...

Solution Summary

The solution computes inventory conversion period and average collection period.