6. The Greek Connection had sales of $32 million in 2013, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below:

a. Calculate The Greek Connection’s net working capital in 2013.

b. Calculate the cash conversion cycle of The Greek Connection in 2013.

c. The industry average accounts receivable days is 30 days. What would have been the cash conversion cycle for The Greek Connection in 2013 had it matched the industry average for accounts receivable days (see MyFinanceLab for the data in Excel format)?

The Greek Connection Balance Sheet as of December 31,2013 (thousands of dollars)

Assets Liabilities and Equity Cash

$ 2,000 Accounts payable

$1,500 Accounts receivable 3,950 Notes payable 1,000 Inventory 1,300 Accruals 1,220 Total current assets

$ 7,250 Total current liabilities

$ 3,720 Net plant, property, and equipment 8,500 Long-term debt

$ 3,000 Total liabilities

$ 6,720 Total assets

$15,750 Common equity

$ 9,030 Total liabilities and equity

$15,750