Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All credit accounts are collected in the following month.    Assume the following sales:          January $ 78,000 February   68,000 March   113,000 April   58,000   Sales in December of the prior year were $88,000. Prepare a cash receipts schedule for January through April.   Eastern Auto Parts Inc.                                                                              January February March April Sales Cash receipts: Cash sales Prior month's credit salesTotal cash receipts$0$76,000$77,000$102,000

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.