What is the length of the cash conversion cycle

Reference no: EM132210866

Question - CASH CONVERSION CYCLF

Zane Corporation has an inventory conversion period of 58 days, an average collection period of 26 days, and a payables deferral period of 32 days. Assume 365 days in year for your calculations.

a. What is the length of the cash conversion cycle?

b. If Zane's annual sales are $3,367,495 and all sales are on credit, what is the investment in accounts receivable?

c. How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio.

Reference no: EM132210866

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