Question
2.Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 38 days, and a payables deferral period of 30 days.
2.Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 38 days, and a payables deferral period of 30 days.
a. What is the length of the cash conversioncycle?b. If Zoccosannual sales are $3,421,875 and all sales are on credit, what is the investmentin accounts receivable?c. How many times per year does Zoccoturn over its inventory? Assume that cost of goods sold is 75% of sales.CCC=(Inventory/(COGS/365))+(Receivables/(Sales/365))-(Payables/(COGS/365))Investment in A/R=(Credit Sales/(365/Collection Period)Inventory Turnover=COGS/Average Inventory
please with explaining from where the numbers come from ?
please i have the answers but i need to be explained
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