Question

Zane Corporation has an inventory conversion period of 86 days, an average collection period of 33 days, and a payables deferral period of 38 days. Assume 365 days in year for your calculations.

Length of the cash conversion cycle = 81 days

Zane's annual sales are $3,457,635 and all sales are on credit.

The investment in accounts receivable is $312,608.09

**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.
Do not round intermediate calculations. Round your answer to two
decimal places.

Answer #1

Inventory turnover ratio=Cost of goods sold / average inventory

**(Usually Cost of goods sold is used to find inventory
turnover ratio.Sales is used to find Debtors
turnover.)**

Inventory conversion period =365/ inventory turnover ratio
**OR**

Inventory conversion period=(Average inventory/Cost of goods sold)*365

Inventory conversion period =86 days

Cost of goods sold=Sales *75%

=3,457,635 *75%=2,593,226.25

Average inventory/2,593,226.25 *365=86 days (inventory conversion period)

average inventory * 365=2,593,226.25*86

Average inventory=611,006.732876

Inventory turover ratio=2,593,226.25/611,006.732876

=4.2441860451 times **ie.,** 4.24 times

Negus Enterprises has an inventory conversion period of 62 days,
an average collection period of 35 days, and a payables deferral
period of 36 days. Assume that cost of goods sold is 80% of sales.
Assume 365 days in year for your calculations.
What is the length of the firm's cash conversion cycle?
days
If Negus' annual sales are $3,705,000 and all sales are on
credit, what is the firm's investment in accounts receivable? Round
your answer to the nearest...

Negus Enterprises has an inventory conversion period of 72 days,
an average collection period of 46 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) What is the length of the firm's cash conversion cycle?
B) If Negus's annual sales are $3,523,450 and all sales are on
credit, what is the firm's investment in accounts receivable? Round
your answer to the...

Cash Conversion Cycle
Negus Enterprises has an inventory conversion period of 60 days,
an average collection period of 48 days, and a payables deferral
period of 27 days. Assume that cost of goods sold is 80% of sales.
Assume a 365-day year. Do not round intermediate calculations.
What is the length of the firm's cash conversion cycle? Round
your answer to the nearest whole number.
___days
If annual sales are $4,124,500 and all sales are on credit, what
is the...

Space Enterprises has an inventory conversion period of 55 days,
an average collection period of 44 days, and a payables deferral
period of 29 days. Assume that cost of goods sold is 80% of sales.
Assume 365 days in year for your calculations. What is the length
of the firm's cash conversion cycle? 62 days If Space's annual
sales are $3,432,450 and all sales are on credit, what is the
firm's investment in accounts receivable? Round your answer to the...

Negus Enterprises has an inventory conversion period of 62 days,
an average collection period of 45 days, and a payables deferral
period of 20 days. Assume that cost of goods sold is 80% of sales.
Assume 365 days in year for your calculations. What is the length
of the firm's cash conversion cycle? days
If Negus's annual sales are $3,824,775 and all sales are on
credit, what is the firm's investment in accounts receivable? Round
your answer to the nearest...

Problem 16-11
Cash Conversion Cycle
Negus Enterprises has an inventory conversion period of 62 days,
an average collection period of 35 days, and a payables deferral
period of 36 days. Assume that cost of goods sold is 80% of sales.
Assume 365 days in year for your calculations.
What is the length of the firm's cash conversion cycle?
days
If Negus's annual sales are $3,705,000 and all sales are on
credit, what is the firm's investment in accounts receivable? Round...

Nexus 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.
1 what is the length of the firms cash conversion
cycle?
2 if annual sales are 4380000 dollars and all sales
are on credit what is the firm's investment in accounts
receivable?
3 how many times per year does negus Enterprises turn
over its inventory?

Problem 16-11
Cash Conversion Cycle
Negus Enterprises has an inventory conversion period of 72 days,
an average collection period of 50 days, and a payables deferral
period of 29 days. Assume that cost of goods sold is 80% of sales.
Assume 365 days in year for your calculations.
What is the length of the firm's cash conversion cycle?
days
If Negus's annual sales are $3,757,625 and all sales are on
credit, what is the firm's investment in accounts receivable? Round...

Chastain Corporation is trying to determine the effect of its
inventory turnover ratio and days sales outstanding (DSO) on its
cash conversion cycle. Chastain's 2016 sales (all on credit) were
$290,000; its cost of goods sold is 80% of sales; and it earned a
net profit of 5%, or $14,500. It turned over its inventory 6 times
during the year, and its DSO was 30.5 days. The firm had fixed
assets totaling $45,000. Chastain's payables deferral period is 45
days....

A firm’s average age of inventory is 80 days, the average
collection period is 50 days.
a. With average payment
period of 70 days, compute Cash Conversion Cycle (CCC).
b. Explain
whether the CCC should be lengthened or shortened.

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