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What Is the Inventory Period for a Firm with an Annual

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What is the inventory period for a firm with an annual cost of goods sold of $8 million, $1.5 million in inventory, and a cash conversion cycle of 75 days?


Definitions:

Investing Activities

Activities involving the buying and selling of long-term assets and investments, excluding those considered as cash equivalents.

Financing Activities

Activities that result in changes in the size and composition of the contributed equity and borrowings of an entity, often reflected on the cash flow statement.

Statement Of Cash Flows

A financial report that shows the cash inflows and outflows from operating, investing, and financing activities over a period.

Cash Flows

Refers to the net amount of cash and cash equivalents being transferred into and out of a business.

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