Question: Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 65 days, an average collection period of 36 days, and a payables deferral period

Cash Conversion Cycle

Negus Enterprises has an inventory conversion period of 65 days, an average collection period of 36 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations.

a. If Negus's annual sales are $3,679,100 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar.

_______$

b. How many times per year does Negus Enterprises turn over its inventory? Round your answer to two decimal places.

________

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