=+P15–1 Cash conversion cycle Metal Supplies is concerned about its cash management. On average, the day’s sales in inventory (duration of inventory on shelf) is 90 days.

Accounts receivable are collected in 90 days, while accounts payable are paid in 60 days. Metal Supplies has annual sales of $14 million; cost of goods sold total $9.5 million, and purchases are $5 million. (Note: Use a 365-day year.)