ACCOUNTING

Assignment



Assignment

1. Cash Conversion Cycle: Auburn Hair Products

Inventory Turnover (ITO) = or = 6 six times a year, 6 X

Receivable Turnover (RTO) = 10 times a year, 10 X

Payable Turnover (PTO) = = 12 times a year, 12 X

Inventory Conversion Period =??

Receivable Collection Period =??

The accounts receivable period is the time required to collect payment on a credit sale. Credit policy is a primary determinant of the accounts receivable period via its relationship to the average collection period and sales.

Payable Deferral Period =??

Cash Conversion Cycle =??

Inventory Conversion Periodor Day Inventory Outstanding (DIO)=

=

= 10 days

Receivable Collection Period or Day Sales ...