Calculate the firm receivables collection period

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Question - An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, the analyst wants to determine the firm's cash conversion cycle. Using the following information and a 365-day year: Current inventory = $160,000; Annual sales = $1,095,000; Accounts receivable = $180,000; Accounts payable = $36,000; Total annual purchases = $730,000. We know the firm's inventory conversion cycle is 80 days.

Required - Based on information above:

1. Calculate the firm's receivables collection period.

2. Calculate the firm's payables deferral period.

3. Calculate the firm's cash conversion cycle (CCC).

Reference no: EM133026631

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