Cash Conversion Cycle
1. Negus Enterprises has an inventory conversion period of 50 days, an aver- age collection period of 35 days, and a payables deferral period of 25 days.
2. Negus Enterprises has an inventory conversion period of 50 days, an aver- age collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. a. What is the length of the firm’s cash conversion cycle?