27-28

27. Desai Inc. has the following data, in thousands. Assuming a 365-day yeur, what is the firm's cash conversion cycle? Do not round intermediate calculations. Round to the nearest whole day. Annual sales - $45,000 Annual cost of goods sold - $24,500 Inventory $4,500 Accounts receivable $1,800 Accounts payable $2,500 a. 44 days b. 40 days c. 55 days d. 45 days e. 54 days 28. A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 63 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.) a. 14.35% b. 12.48% c. 14.06%