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?
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