+1 862 207 3288 1. The accounts payable of Momma's Baby Inc. generally equal $1.6 million. If the turnover of accounts payable is 20, what are the company's (a) payables deferral period (DPO) and (b) annual credit purchases?
2. The Saliford Corporation has an inventory conversion period of 60 days, a receivables collection period of 36 days, and a payables deferral period of 24 days.
a. What is the length of the firm's cash conversion cycle?
b. If Saliford's annual sales are $3,960,000 and all sales are on credit, what is the average balance in accounts receivable?
c. How many times per year does Sanford turn over its inventory?
d. What would happen to Salford's cash conversion cycle if, on average, inventories could be turned over eight times a year?
