Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Negus Enterprises has an inventory conversion period of 69 days, an average collection period of 40 days, and a payables deferral period of 27 days.

image text in transcribed

Negus Enterprises has an inventory conversion period of 69 days, an average collection period of 40 days, and a payables deferral period of 27 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. a. What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number days b. If annual sales are $4,854,500 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar. $ c. 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Banking And Financial Markets

Authors: Stephen Cecchetti

2nd Edition

0073523097, 9780073523095

More Books

Students also viewed these Finance questions

Question

What are the three categories of time? (p. 291)

Answered: 1 week ago