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Apex Manufacturing has the following operational data: . • Inventory conversion period: 35 days Average collection period: 45 days Payables deferral period: 40 days Annual credit sales: $3,500,000 Cost of goods sold: 70% of sales Calculate: ⚫ The length of the cash conversion cycle (round to 2 decimal places) • The investment in accounts receivable (round to nearest cent) The inventory turnover ratio (round to 2 decimal places)

Apex Manufacturing has the following operational data: . • Inventory conversion period: 35 days Average collection period: 45 days Payables deferral period: 40 days Annual credit sales: $3,500,000 Cost of goods sold: 70% of sales Calculate: ⚫ The length of the cash conversion cycle (round to 2 decimal places) • The investment in accounts receivable (round to nearest cent) The inventory turnover ratio (round to 2 decimal places)

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Apex Manufacturing has the following operational data: . • Inventory conversion period: 35 days Average collection period: 45 days Payables deferral period: 40 days Annual credit sales: $3,500,000 Cost of goods sold: 70% of sales Calculate: ⚫ The length of the cash conversion cycle (round to 2 decimal places) • The investment in accounts receivable (round to nearest cent) The inventory turnover ratio (round to 2 decimal places)
Transcribed Image Text:Apex Manufacturing has the following operational data: . • Inventory conversion period: 35 days Average collection period: 45 days Payables deferral period: 40 days Annual credit sales: $3,500,000 Cost of goods sold: 70% of sales Calculate: ⚫ The length of the cash conversion cycle (round to 2 decimal places) • The investment in accounts receivable (round to nearest cent) The inventory turnover ratio (round to 2 decimal places)
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