The Zocco Corporation has an inventory conversion period of 60days,an average collection period of 38 days and a payables deferral period of 30days.Assume that costs of goods sold is 75% of sales.
a. What is the length of the firm'cash conversion cycle?
b. If Zocco's annual sales are $3,421,875 and all sales are on credit,what is the firm's investment in account receivable?
c. How many times per year does zocco turn over its inventory?