Parket Company began 2000 with accounts receivable of $32,000 and inventory of

$40,000. During 2000, the company made total net sales of $500,000, of which 70% were credit sales. The company’s cost of goods sold averaged 60% of total net sales during 2000. Parket was open for business each day of the year, and at the end of the year it had accounts receivable of $36,000 and inventory of $60,000.

Required: (1) Compute the inventory turnover and the number of days in the selling period for 2000.

(2) Compute the accounts receivable turnover and the number of days in the collection period for 2000.

(3) What is your estimate of the number of days in the company’s operating cycle during 2000?