Nepal Sugar Corporation as an inventory conversion period 75 days, a receivables conversion period of 38 days and payable deferral period of 30 days.
(a) What is the length of the firm’s cash conversion cycle?
(b) If the corporation’s annual sales are Rs. 3,375,000 and all sales are on credit, what is the firm’s investment in accounts receivables?
(c) How many times per year does the company turn over its inventory?