Inventory Conversion Cycle over days

Consider the case of Red Pencil Office Supplies: Red Pencil Office Supplies is a mature firm that has a stable flow of business. The following data was taken from its financial statements last year: Red Pencil'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 complete the following table. 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