The Zocco Corporation has an inventory conversion period of 75 days, a receivables collection period of 38

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 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?

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...