Cash conversion cycle-inventory conversion period

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Reference no: EM13975143

Cash Conversion Cycle

Negus Enterprises has an inventory conversion period of 65 days, an average collection period of 36 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations.

a. If Negus's annual sales are $3,679,100 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar.

b. How many times per year does Negus Enterprises turn over its inventory? Round your answer to two decimal places.

Reference no: EM13975143

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