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    Cash Conversion Cycle

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    The Zocco Corporation has an inventory conversion period of 75 days, a receivables collection period of 38 days, and a payables deferral period of 30 days.

    a. What is the length of the firm's cash conversion cycle?
    b. If Zocco's annual sales are $3,421,875 and all sales are on credit, what is the firm's investment in accounts receivable?
    c. How many times per year does Zocco turn over its inventory?

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    https://brainmass.com/economics/finance/cash-conversion-cycle-investments-inventory-zocco-co-312781

    Solution Preview

    Cash Conversion Cycle
    The Zocco Corporation has an inventory conversion period of 75 days, a receivables collection period of 38 days, and a payables deferral period of 30 days.

    a. What is the length of the firm's cash conversion cycle?
    Cash conversion ...

    Solution Summary

    Provides steps to calculate the length of the firm's cash conversion cycle, the firm's investment in accounts receivable and times per year that the firm turns over its inventory.

    $2.19