1. What is Luther's operating cycle?

Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2020. A simplified balance sheet for the firm appears below: Luther Industries Balance SheetAs of December 31, 2020 (millions of dollars) Assets Liabilities and Equity Cash 25 Accounts payable 60 Accounts receivable 85 Notes payable 425 Inventory 90 Accruals 45 Total current assets 200 Total current liabilities 530 Net plant, property, and equipment Long term debt 2,725 6,100 6,300 Total assets Total liabilities 3,255 Common equity 3,045 Total liabilities and equity 6,300