Tauscher Textiles Corporation has an inventory conversion period of 45 days, a receivables collection period of 36 days, and a payables deferral period of 35 days.
a. What is the length of the firm’s cash conversion cycle?
b. If Tauscher’s sales are $4,309,028 and all sales are on credit, what is the firm’s investment in accounts receivable?
c. If the firm’s cost of goods sold are $3,231,771 and all sales are on credit, how much inventory is on the firm’s balance sheet.