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L & H Company, a company that supplies electronic products, has annual credit sales of...

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Finance

L & H Company, a company that supplies electronic products, has annual credit sales of 200,000. The cost of goods sold is 30% of sales. The average inventory is 12,000, the average receivables is 10,000, and the average payables is 6,000. Assume 360 days in a year.

i. Find the average age of inventory (2 marks)

ii. Calculate average collection period (2 marks)

iii. Calculate the cash conversion cycle (2 marks)

iv. What is the average payment period? (2 marks)

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