Question
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 80 days, an average collection period of 43 days, and a payables deferral period
Cash Conversion Cycle
Negus Enterprises has an inventory conversion period of 80 days, an average collection period of 43 days, and a payables deferral period of 27 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations.
What is the length of the firm's cash conversion cycle? days
If Negus's annual sales are $3,980,700 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar. $
How many times per year does Negus Enterprises turn over its inventory? Round your answer to two decimal places.
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