Assige 9Chapter 21: Supply Chains and Working Capital Management 3. Cash conversion cycle Jealous Leopard Trading Company is a mature firm that has a stable flow of business. The following data was taken from its financial statements last year: Annual sales $10,500,000 $7,350,000 Cost of goods sold Inventory $2,900,000 Accounts receivable $2,300,000 Accounts payable $2,400,000 Leopard Trading's CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to answer the following questions. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) What is the value of the inventory conversion period? 46.93 days 49.53 days 144.01 days O 41.71 days Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the average collection period uses average daily sales in its denominator. Why do these measures use different inputs? Assignment 9- Chapter 21: Supply Chains and Working Capital Management Both the inventory conversion period and payables deferral period use the average dally COGS in their denominators, whereas the average collection period uses average daily sales in its denominator. Why do these measures use different inputs? Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold. O Current assets should be divided by sales, but current liabilities should be divided by the COGS. What is the average collection period? 30.40 days 27.50 days O 79.95 days O24.61 days What is the payables deferral period? 47.47 days 45.31 days 119.18 days 38.84 days What is the cash conversion cycle? Cunatu UCOISH MIS What is the average collection period? O 30.40 days O27.50 days O79.95 days O24.61 days What is the payables deferral period? O47.47 days 45.31 days O 119.18 days 38.84 days What is the cash conversion cycle? 43.63 days 104.78 days O36.04 days 41.73 days Grade It Now Save & Continue Continue without saving