Question
Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 28 days, and a payables deferral period of 39 days.
Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 28 days, and a payables deferral period of 39 days. Assume 365 days in year for your calculations.
What is the length of the cash conversion cycle? Round your answer to two decimal places.
______days
If Zocco's annual sales are $4,828,455 and all sales are on credit, what is the investment in accounts receivable? Round your answer to the nearest cent.
$______
How many times per year does Zocco turn over its inventory? Assume that cost of goods sold is 75% of sales. Round your answer to two decimal places.
______times
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