Question

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 nearest dollar. Do not round intermediate calculation. $ How many times per year does Space Enterprises turn over its inventory? Round your answer to two decimal places. Do not round intermediate calculation.

Answer #1

**The length of the firm's cash
conversion cycle**

The firm's cash conversion cycle = Average collection period + Inventory conversion period - payables deferral period

= 44.00 Days + 55.00 Days – 29.00 Days

= 70.00 Days

**Firm's investment in accounts
receivable**

Firm's investment in accounts receivable = Sales x [Average collection period / 365 Days]

= $3,432,450 x [44.00 Days / 365 Days]

= $413,774.79

**Inventory Turnover ratio**

Inventory Turnover ratio = 365 Days / Inventory conversion period

= 365 Days / 55.00 Days

= 6.64 Days

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...

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...

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...

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...

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...

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?

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%...

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....

43. You have recently been hired to analyze a firm’s cash
conversion cycle. Using the following information and a 365-day
year: Current inventory = $120,000; Annual sales = $600,000;
Accounts receivable = $157,808; Accounts payable = $25,000; Total
annual purchases = $365,000. Calculate the firm’s cash conversion
cycle (CCC).
25 days
73 days
96 days
144 days
44. Based on the results in Question 43, which of the following
methods can be used to improve the firm’s cash conversion
cycle?...

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