2. In the table below is information for two companies: $000) Company K Company L Net sales(revenues 21,472 23,314 Cost of goods sold 13,050 5,192 Average inventory 350 457 Average accounts 1,837 4,996 receivable Average accounts payable 2,025 1,048 Turnover days Days inventory outstanding 37 32 Days sales outstanding Days payable outstanding 61 75 Total assets 12,500 12,000 Cash conversion cycle From the above data, make the observations about the relative performance and determine better-performed company. (Remember that the shorter the number of days in this cycle, more the amount of available cash, and less need to borrow). 31 78