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Homework answers / question archive / Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days
Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales.
c. How many times per year does Negus Enterprises turn over its inventory?
The Inventory conversion Period = 50 days
Inventory Turnover = 365/50
Inventory Inventory = 7.3 times
