Blue Ostrich Manufacturing Company is a mature firm that has a stable flow statements last year: Annual sales Cost of goods sold Inventory Accounts receivable Accounts payable $10,500,000 $8,400,000 $2,700,000 $1,800,000 $2,500,000 Inventory Conversion Period Average collection period Payables Deferral Period Blue Ostrich'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 complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) business. The following data was taken from its financial Value

Blue Ostrich Manufacturing Company is a mature firm that has a stable flow of business, The following data was taken from its financial stotements tast year: Blue Ostrich's CFO is interested in determining the length of time funds are tied up in working capital, Une the information in the preceding table to complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) Both the inventory conversion period and payables deferral period use the overage daily cogs in their denominators, whereas the overage collection period uses averege difly sales in its denominator: Why do these monsures use differont inputs? Current assets should be divided by sales, but current liabilities should be divided by the coos. teventory and accounts payatse are carribd at cost on the bstancesticat, whereas accounts receivable are recorded at the price at, which goods are sold. The management at tilue Ostrich Manufacturing Company wants to continue its intemal discustions related to its cash management. One of the finance team members presents the following case about Loud Noise Recordings to his cohortat Loud Noise Recordings's management plans to finance its operations with bank loans that will be repaid as soon as cash is ovailable. The company's management expects that it will take 50 days to manufacture and sell its products and 40 days to recelve payment from its customers, Loud Noise's CFO has told the rest of the management team that they should expect the length of the bank ioans to be approximately 90 days. Which of the following responses to the CFO's statement is most accurate? The CrO'z approximation of the length of the bank loans should be accurate, because it will take 90 days for the company to manufacture, sell, and coliect cash for its goods. All these things must occur for the company to be able to repay its loans frem the bank. The CFo is not taking into occount the amount of time the company has to pay its suppliera. Generally, there is a certain length of tima between the purchase of materlals and labor and the payment of cash for them. The cFo can reduce the estimated length of the bank loan by this amount of time