The Zocco Corporation has an inventory conversion period of 60 days, an average collection period of 38 days, and a payables deferral period of 30 days. Assume that cost of goods sold is 75% of sales. a. What is the length of the firm's cash conversion cycle? b. If Zocco's annual sales are $3,421,875 and all sales are on credit, what is the firm's investment in accounts receivable? c. How many times per year does Zocco turn over its inventory? **Having trouble with section C, I know the COGS but how would I find out the average inventory if I don't know the beginning or ending inventory values?**

16-11 The Zocco Corporation has an inventory conversion period of 60 days, an average collection period of 38 days, and a payables deferral period of 30 days. Assume that cost of goods sold is 75% of sales. a. What is the length of the firm's cash conversion cycle? Conversion Period Average Collection Period Payables Deferral Period Length of Cash Conversion Cycle 60 38 30 68 b. If Zocco's annual sales are $3,421,875 and all sales are on credit, what is the firm's investment in accounts receivable? Days Per Year Average Collection Period RTC Annual Sales 365 38 9.6052631579 $3,421,875.00 c. How many times per year does Zocco turn over its inventory? Days Per Year Conversion Period Inventory Turn Over 365 ??? COGS $2,566,406.25 Firm's Investment in Accounts Receivable $356,250.00