1. Sharam Industries has a 120 day operating cycle, if its average age of inventory is 50 days, how long is its average collecting period? If its average payment period is 30 days, what is its cash conversion cycle? Place all of this information on a time line similar to Figure 15.2 on page 605.

2. Icy treats, Inc., is a seasonal business that sells frozen desserts. At the peak of its summer selling season the firm as $35,000 in cash, $125,000 in inventory, $70,000 in accounts receivable, and $65,000 in accounts payable. During the slow winter period the firm holds $10,000 in cash, $55,000 in inventory, $40,000 in accounts receivable, and $35,000 in accounts payable. Calculate Icy Treats