Problem:
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.
Required:
Question 1: What is the length of the cash conversion cycle?
Question 2: If Zocco's annual sales are $3,421,875 and all sales are on credit, what is the investment in accounts receivable?
Question 3: How many times per year does Zocco turn over its inventory?
Note: Explain all calculation and formulas.