Question details

Zocco Corporation has an inventory conversion period of 75
$ 12.00

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.
a. What is the length of the cash conversion cycle?
b. If Zocco’s annual sales are $3,421,875 and all sales are on credit, what is the investment
in accounts receivable?
c. How many times per year does Zocco turn over its inventory? Assume that cost of
goods sold is 75% of sales.

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