Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 68 days, an average collection period of 38 days, and a payables deferral period

image text in transcribed
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 68 days, an average collection period of 38 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. a. What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number. days b. If annual sales are $4,015,000 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar $ C. How many times per year does Negus Enterprises turn over its inventory? Round your answer to two decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Belverd E Needles, Marian Powers

10th Edition

0547193289, 9780547193281

More Books

Students also viewed these Finance questions

Question

What is e-procurement?

Answered: 1 week ago