Cash Conversion Cycle

Negus Enterprises has an inventory conversion period of 62 days, an average collection period of 36 days, and a payables deferral period of 21 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations.

1. A.Whatisthelengthofthefirm'scashconversioncycle?days
2. Ans
3. B.IfNegus'sannualsalesare$3,973,625andallsalesareoncredit,whatisthefirm'sinvestmentinaccountsreceivable?Roundyouranswertothenearestdollar.$
4. Ans
5. c.HowmanytimesperyeardoesNegusEnterprisesturnoveritsinventory?Roundyouranswertotwodecimalplaces.
6. Ans