Current Asset Use. Analyze the following situations:

(a) If net credit sales for the year is \(\$ 15,000,000\) and average accounts receivable is \(\$ 3,000,000\), how many days of sales are in accounts receivable on the average? What is the receivables turnover?

(b) If the cost of goods sold is \(\$ 7,200,000\) and average inventory of merchandise is \(\$ 600,000\), how many days of sales are in inventory on the average? What is the inventory turnover?

(c) If accounts receivable should be collected in 40 days and inventory turns over six times per year, how long is the operating cycle?