Excel Problem: XYZ Corp. is trying to determing the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle (CCC).
XYZ's 2016 sales (all credit) were $121,000, of which 80% were cost of goods sold. Inventory was $17,286, and Accounts Receivable is $12,266.
XYZ deferred its payables for a period of 35 days.
Calculations
A. Calculate XYZ's inventory conversion period.
Inventory :		enter data in blue cells
Cost of goods sold :		enter formulas in yellow cells
Inventory conversion period (days)	:
B. Calculate XYZ's average collection period.
Receivables :		enter data in blue cells
Sales :		enter formulas in yellow cells
Average Collection period (days)	:
C. Calculate XYZ's cash conversion cycle.
Inventory Conversion period :
Average Collection period :
Payables Deferral period :
Cash Conversion Cycle (days) :