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What is the firm investment in accounts receivable

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Problem - Cash Conversion Cycle - Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales.

a. What is the length of the firm's cash conversion cycle?

b. If annual sales are $4,380,000 and all sales are on credit, what is the firm's investment in accounts receivable?

c. How many times per year does Negus Enterprises turn over its inventory?

Reference no: EM132905616

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