Question
The following information is provided for a firm: Annual sales $1,216,666 Cost of goods sold 1,013,889 Inventory 166,666 Accounts receivable 250,000 Accounts payable 150,000 a.
The following information is provided for a firm:
Annual sales $1,216,666
Cost of goods sold 1,013,889
Inventory 166,666
Accounts receivable 250,000
Accounts payable 150,000
a. What is the inventory conversion period?
b. What is the average collection period?
c. What is the payables deferral period?
d. What is the cash conversion cycle?
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International Financial Management
Authors: Cheol Eun
9th Edition
1260788865, 9781260788860
