Capers, Inc. has just promoted you to Chief financial officer. Since this is a new office in the company, you are understaffed and many of the responsibilities have been assigned to you.

1. Inventory conversion period is 60 days
2. Payables deferral period is 30 days
3. Payables deferral period is 30 days

1. The company needs $1,500,000 for a new project.
2. The loan will cost 10% simple interest, for 4 months, with a 20% compensating balance.

• Analyze what is the firm's cash conversion cycle.