Question
Negus Enterprises has an inventory conversion period of 56 days, an average collection period of 42 days, and a payables deferral period of 22 days.
Negus Enterprises has an inventory conversion period of 56 days, an average collection period of 42 days, and a payables deferral period of 22 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations.
-
What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number.
-
If annual sales are $4,927,500 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar.
-
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started