Cash Conversion Cycle
Negus Enterprises has an inventory conversion period of 56 days, an average collection period of 38 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.
A. What is the length of the firm's cash conversion cycle?
___________ days
B. If Negus's annual sales are $3,360,275 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar.
$___________
C. How many times per year does Negus Enterprises turn over its inventory? Round your answer to two decimal places.