Description
Complete Parts 1 and 2 of the Cash Conversion Cycle. Use Microsoft Excel to record your calculations.
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Explanation & Answer
Attached.
a. determine the length of the inventory conversion period
12/60*365
73 days
Part b
Receivables conversion period= receivables /sales
*365
14/100*365
51.1 days
Part c
c. determine the length of the operating cycle
73+51.1 days
124.1 days
Part D
Payable deferral paeriod= account payable+ Salaries and benefits /(cost of sales +sEl...