What is the length of my company

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My company has an inventory conversion period of 57 days, an average collection period of 39 days, and a payables deferral period of 28 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year.

  1. What is the length of my company's cash conversion cycle?
  2. If annual sales are $4,964,000 and all sales are on credit, what is my company's investment in accounts receivable?
  3. How many times per year does my company turn over its inventory?

Reference no: EM132411180

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