Question: Calculate Inventory Conversion Period, Receivables Conversion Period, the Payment Conversion Period, and the Operating Cycle for Innovation Inc. given the following information. Use 365 to

Calculate Inventory Conversion Period, Receivables Conversion Period, the Payment Conversion Period, and the Operating Cycle for Innovation Inc. given the following information. Use 365 to get an average:

  1. Inventory = $ 5, 600
  2. C O G S = $ 3, 600
  3. A / P = $ 2, 100
  4. Purchases = $ 3, 250
  5. Revenues = $ 4, 500
  6. A / R = $ 3, 200
  7. Calculate the Cash Conversion Cycle for the above data from Innovation Inc. and graph on a timeline.
  8. Can a Cash Conversion Cycle be negative? Why or why not? What does this mean?

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