(Calculating the cash lag, LO 2) Dickens Tailor Shop (Dickens) makes tailored-tomeasure suits, jackets, and pants for men and women. Customers who are interested in purchasing this clothing make an appointment with one of Dickens’ tailors, at which time the customer decides on the style of clothing, selects an appropriate fabric, and is measured by the tailor. Dickens keeps a large selection of fabrics so customers can see the actual fabric their clothing will be made from. A bolt of fabric is, on average, held in inventory for five months before it’s used to make a garment. Dickens pays for its fabric 45 days from the time it’s received from a supplier. The time from a customer’s first appointment to the completion and delivery of the garment is, on average, 35 days. Customers receive an invoice when the garment is delivered and payment is received from the customer, on average, 15 days from the time of delivery.

Required:

Calculate the following for Dickens Tailor Shop:

a. Payables deferral period

b. Inventory self-financing period

c. Inventory conversion period

d. Receivables conversion period

e. Number of days between receiving inventory from suppliers and receiving cash from customers