Accounting calculate a. b. c. Houston Corporation has an inventory conversionperiod of 60 days (DII), a receivables collectionperiod of 36 days (DSO), and a payables deferralperiod of 24 days (DPO).A. What is the length of the company's cashconversion cycle?B. If Houston's annual sales are $3,960,000 and allsales are on credit, what is the average balance inaccounts receivable?C. How many times per year does Houston turn overits inventory?D. What would happen to Houston's cash conversioncycle if, on average, inventories could be turnedover eight times a year?

Question A):• Step 1: Use the formula: CCC = DII + DSO − DPO• Step 2: Add DII and DSO• Step 3:…

Answered: Houston Corporation has an inventory…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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