Consider the case of Black Sheep Broadcasting Company: Black Sheep Broadcasting Company is a mature firm that has a stable flow of business. The following data was taken from its financial statements last year: Annual sales $9,700,000 $7,275,000 Cost of goods sold Inventory $2,700,000 Accounts receivable $1,800,000 Accounts payable $2,400,000 Black Sheep Broadcasting's CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to answer the following questions. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) What is the value of the inventory conversion period? 38.32 days 41.06 days 52.01 days 135.46 days Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the average collection period uses average daily sales in its denominator. Why do these measures use different inputs? Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold. Current assets should be divided by sales, but current liabilities should be divided by the COGS. What is the average collection period? O 17.52 days O 67.73 days O 16.42 days 0 23.00 days What is the payables deferral period? O 23.00 days is the payables deferral period? O 41.37 days O 38.94 days O 120.41 days 53.54 days t is the cash conversion cycle? O 32.18 days 82.78 days 25.18 days O 23.78 days