Zane Corporation has an inventory conversion period of 64 days,an average collection period of 28 days, and a payables deferral period of 41 days.a. What is the length of the cash conversion cycle?b. If Zane’s annual sales are $2,578,235 and all sales are on credit, what is the investmentin accounts receivable?c. How many times per year does Zane turn over its inventory? Assume that the cost ofgoods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio.

Q: Provide Answer with Calculation

A:

Q: You prefer to extend credit on the assumption that you will be paid in full within 10 days of the…

A: Variables in the question:Average inventory=$ 720,000Cash sales (no credit sales)= $4,400,000…

Q: Your boss asks you to compute your company's cash conversion cycle. Looking at the financial…

A: Average inventory$24,800Accounts receivables averaged$18,700Accounts payables…

Q: The following financial information relates to XYZ Company: Inventory turnover: 5 times Accounts…

A: Operating cycle measures the time taken by a company to convert its inventory into cash. Operating…

Q: ou prefer to extend credit on the assumption that you will be paid in full within 42 days of the…

A: Solution:- As given in the question, Firm X has an average inventory of $640,000 and sales of…

Q: A CARDBOARD BOX FACTORY pays its suppliers 40 days after making the purchase and receiving the…

A: The question is related to Operating cycle in Working Capital Management.   Since you have posted a…

Q: (16-11) Cash Conversion Negus Enterprises has an inventory conversion period of 50 days, an average…

A: Number of days 365 Days Divided by:  Average collection period 35 Days   Accounts receivable…

Q: a. EFG reports annual sales of $ 30 million. Annual costs of goods sold is $ 15 million. Inventory…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: Zane Corporation has an inventory conversion period of 48 days, an average collection period of 26…

A: Cash conversion cycle(CCC) will be CCC =Inventory conversion period + Average collection period…

Q: Westerly Industries has the following financial information. What is its cash conversion cycle?…

A: The cash conversion cycle refers to the number of days required to convert the cash that is spent on…

Q: Fires Inc. has a cash conversion cycle of 3 weeks. It has a receivable turnover of 45 and disburse…

A: Return on assets indicates the firm's profitability on total assets. It can be calculated by…

Q: For the Bayer Company, the average age of accounts receivable is 60 days, the average age of…

A: Step 1: Step 2: Step 3: Step 4:

Q: Suppose that Ken-Z Art Gallery has annual sales of $870,000, cost of goods sold of $560,000, average…

A: This is based on financial ratio analysis. Financial ratios are based on the relationship between…

Q: nmoo Company's average age of accounts receivable is 89 days, the average age of accounts payable is…

A: The cash conversion cycle (CCC) is a financial metric that measures the time it takes for a company…

Q: Libscomb Technologies' annual sales are $6,750,624 and all sales are made on credit, it purchases…

A: Receivables Period = 365 / Receivables turnover

Q: Provide correct solution

A: Step 1: Definition of Cash Conversion CycleThe cash operating cycle is operating cycle less…

Q: Libscomb Technologies' annual sales are $6,974,991 and all sales are made on credit, it purchases…

A: inventory turnover formula: inventory turnover =cogsinventory given, COGS = $3511,535 inventory =…

Q: Watts Industries' carries 87 days in Inventory, and collects its Accounts Receivable in 75 days. If…

A: The cash conversion cycle is the number of days required for the cash invested in inventory to be…

Q: None

A: cash conversion cycle (CCC) for Bayer Company, calculated as days inventory outstanding (72days)…

Q: Berry Manufacturing turns over its inventory 8 times each year, has an Average Payment Period of 35…

A: To Find: Firm's Operating cycle Cash conversion cycle Daily Cash operating expenditure

Q: Smith Corporation had Sales of $2,350,000 in 2021 and $2,125,000 in 2020. Cost of Good Sold were…

A: In order to find the changes in the sales are the cost of good sold ,the  period of two  are…

Q: Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio…

A: Given:

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.