CASH CONVERSION CYCLE

Zane Corporation has an inventory conversion period of 40 days, an average collection period of 31 days, and a payables deferral period of 32 days. Assume 365 days in year for your calculations.

1.) What is the length of the cash conversion cycle? Round your answer to two decimal places.

days

2.) If Zane's annual sales are $2,555,735 and all sales are on credit, what is the investment in accounts receivable? Round your answer to the nearest cent. Do not round intermediate calculations.

$

3.)How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio. Round your answer to two decimal places. Do not round intermediate calculations.

times