Question: The Zocco Corporation has an inventory conversion period of 75 days, a receivables collection period of 38 days, and a payables deferral period of 30

The Zocco Corporation has an inventory conversion period of 75 days, a receivables collection period of 38 days, and a payables deferral period of 30 days.

a. What is the length of the firm’s cash conversion cycle?

b. If Zocco’s annual sales are $3,421,875 and all sales are on credit, what is the firm’s investment in accounts receivable?

c. How many times per year does Zocco turn over its inventory?

Step by Step Solution

★★★★★

3.48 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a b Average sales per day 3421875365 9375 Investme... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

9-B-F-F-M (337).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 38 days, and a payables deferral period of 30 days. a. What is the length of the cash conversion cycle...

The Saliford Corporation 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 firms cash...

Balloon Payment Financial (BPF) has an inventory conversion period of 45 days, a receivables collection period of 30 days, and a payables deferral period of 20 days. (a) What is the length of the...

CASH CONVERSION CYCLE Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 38 days, and a payables deferral period of 30 days. a. What is the length of the...

Sir for the question 1.2 in the attachment,I got the following answer. cost of debt=8.5 % Cost of equity= 8.2 % WACC =6.96% Is it right Financial Management - MBA ZG 521 Assignment - II (October...

Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 28 days, and a payables deferral period of 39 days. Assume 365 days in year for your calculations....

Cash conversion cycle: Zocco corporation has an inventory conversion period of 75 days., an average collection period of 38 days, and a payable deferral period of 30 days. a. what is the length of...

Tauscher Textiles Corporation has an inventory conversion period of 45 days, a receivables collection period of 36 days, and a payables deferral period of 35 days. Tauscher's sales are $4,309,028 and...

The Zocco Corporation has an inventory conversion period of 60 days, an average collection period of 38 days, and a payables deferral period of 30 days. Assume that cost of goods sold is 75% of...

1. Learning Objective 16-4 Problem 16-1. Cash conversion cycle Primrose Corp has $15 million of sales, $3 million of inventories, $2 million of receivables, and $3 million of payables. Its cost of...

Exercise: A body shown in Figure 1 is subjected to force F and a couple Mo. The magnitude of force is F=11 Newton i +85 Newton j and the magnitude of couple is Mo= 90 N.m k. Find a point on the body...

Numerous studies have shown that high blood cholesterol leads to artery clogging and subsequent heart disease. One such study by D. Scott et al. was published in the paper "Plasma Lipids as...

11. Write a sequence of instructions showing how the Zero flag could be used to indicate unsigned overflow after executing INC and DEC instructions.

How did Refrigerators and Dishwashers transform American society?

Use the Chain Rule to find dz/ds and dz/t. z = ex + 7y, x = s/t, y = t/s az as az %3D at II

What information does this document reveal about the transformation of womens lives happening in the 1920s? I want a short answer that is a couple of sentences.

what is the answer to zybooks cop1200: Introduction to programming in C Chapter 4.19 Lab Password Modifier

Two different strategies are debated for reducing greenhouse gas emissions. One is that all the countries in the world should adopt common measures, such as a carbon tax. The other is that all...

Celtor plc is a property development business operating in the London area. The business has the following capital structure as at 30 November Year 9: The ordinary shares have a current market value...

The valuation approach above takes into account the expected dividend stream over the whole life of the business. Is this relevant for an investor who holds a share for a particular period of time...

Risky Cash Flows The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $6,750 and has an expected life of 3 years. Annual net cash flows...

Define incremental cash flow. (1) Should you subtract interest expense or dividends when calculating project cash flow? (2) Suppose the firm had spent $100,000 last year to rehabilitate the...

In general, do timing options make it more or less likely that a project will be accepted today?

Part 1 Attempt 1/5 for 10 pts. The P/E ratio measures the growth rate of dividends the price an investor pays for $1 of earnings the expected capital gain the price equivalent of $1 of earnings...