Q1) Determine the length of cash conversion cycle for firm with annual sales (all cash) of $280,000, an inventory conversion period of 35 days, and payable deferral period of 25 days.
Q2) Compute the inventory conversion period for O'Brian's if it has sales of $320,000, average inventory of $5,333, and cash conversion cycle of 20 days? Suppose that cost of sales is 55% of sales.