Morgan Sports Company just reported the following financial information.

a. Calculate the firm's days' sales outstanding.
b. What is the firm's days' sales in inventory?
c. What is the firm's days' payables outstanding?
d. What is the firm's operating cycle? How does it compare with the industry average of 72 days?
e. What is the firm's cash conversion cycle? How does it compare with the industry average of 42days?

Transcribed Image Text:

Morgan Sports Equipment Company Assets Liabilities and Equity Cash S 677,423 Accounts receivable 1,845,113 1,312,478 Total current assets $3,835,014 Accounts payable Notes payable Total current liabilities $1,721,669 2,113,345 $3,835,014 Inventories Sales and Costs Net sales Cost of goods sold $9,912,332 $5,947,399