Problem: The Textile Corporation has an inventory conversion period of 45 days, a receivables collection period of 36 days, and payables deferral period of 35 days.
1) What is the length of the firm's cash conversion cycle?
2) If The Textile Corporation's sales are $4,309,028 and all sales are on credit, what is the firm's investment in accounts receivable?
3) How many times per year does The Textile Corporation turn over its inventory?
4) If the firm's sales are $4,309,028, how much inventory is on the firm's balance sheet?