Reference no: EM132017201
1. You have the following information:
Accounts receivable $160,000
Total credit sales $2,500,000
Assume a 360 day year and compute the receivables collection period.
2. Inventory conversion period 15 days
Closing inventory $28,000
Compute C O G S (assuming a 360 day year).
3. Inventory conversion period 68.2 days
Receivables collection period 35.8 days
Payables deferral period 24.6 days
Compute the cash conversion cycle:
4. Inventory conversion period 55.8 days
Days sales outstanding 23.9 days
Days payables outstanding 32.5 days
The cash conversion cycle is: