The Saliford Corporation has an inventory conversion period of 60 days, a receivables collection period of 36

Question:

The Saliford has an inventory conversion period of 60 days, a receivables collection period of 36 days, and a payables deferral period of 24 days.
a. What is the length of the firm’s ?
b. If Saliford’s annual sales are $3,960,000 and all sales are on credit, what is the average balance in accounts receivable?
c. How many times per year does Saliford turn over its inventory?
d. What would happen to Saliford’s if, on average, inventories could be turned over eight times a year?

Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...