Nelson Industries has an inventory conversion period of 45 days, an average collection period of 40 days, and a payables deferral period of 30 days. Assume that cost of goods sold is 75% of sales. Required: a. What is the length of the firm's cash conversion cycle? b. How many times per year does Nelson Industries turn over its inventory?

Nelson Industries has an inventory conversion period of 45 days, an average collection period of 40 days, and a payables deferral period of 30 days. Assume that cost of goods sold is 75% of sales. Required: a. What is the length of the firm's cash conversion cycle? b. How many times per year does Nelson Industries turn over its inventory?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

See similar textbooks

Similar questions

Help
Please provide this question solution general accounting
Zocco corporation has...Accounting questions
22) A firm has the following data: Inventory conversion period = 75 days Average collection period = 32 days Payables deferral period = 45 days What is the firm's cash conversion cycle? 1. 5 days. 2. 40 days. 3. 62 days. 4. 88 days. 5. 15 days.
Please give me answer general accounting
need help this questions
Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and payables deferral period of 25 days. Assume that the costs of goods sold are 80% of its sales. a) What is the length of the firm's cash conversion cycle? b) If Negus's annual sales are $4,380,000 and all sales are on credit, what is the firm's investment in accounts receivable? c) How many times per year does Negus Enterprises turn over its inventory?
ABC Inc. has the following data. What is the firm's cash (conversion) cycle? Inventory Conversion Period = 38 days Receivables Collection Period = 19 days Payables Deferral Period = 26 days
Please provide solution for this general accounting question
Need help with this question solution general accounting
Begusarai enterprises has...Accounting question
(16-11) Cash Conversion Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. Cycle a. What is the length of the firm's cash conversion cycle? b. If annual sales are $4,380,000 and all sales are on credit, what is the firm's investment in accounts receivable? C. How many times per year does Negus Enterprises turn over its inventory?