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What is the inventory conversion period for O'Brian's if it has sales of $320,000, an average inventory of $5,333 and a cash conversion cycle of 20 days? Assume the cost of sales is 55% of sales.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What is the inventory conversion period for O'Brian's if it has sales of $320,000,

an average inventory of $5,333 and a cash conversion cycle of 20 days?

Assume the cost of sales is 55% of sales.

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