5. The Greek Connection had sales of $50 million in 2010, and a cost of goods sold of $30 million. A simplified balance sheet for the firm appears above:

a. Calculate The Greek Connections net working capital in 2010. (3 Marks)

b. Calculate the cash conversion cycle of the Greek Connection in 2010. (8 Marks)

c. The Greek Connection s suppliers offer terms of 2/10, net 30. Does it appears that Greek Connection is doing a good job of managing its accounts payable?(2 Marks)

olovs ESTESTU Assets Cash bris Accounts receivable Inventory Total current assets Net plant, property, and equipment do feum ji 000,ac Total assets The Greek Connection Balance Sheet as of December 31, 2010 (thousands of dollars) $2,000 3,950 1,300 P01=3 $7,250 8,500 migal $ 15,750 $10.380 $12,061 Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt Total liabilities Common equity Total liabilities and equity $1,500 1,000 1,220 $ 3,720 $3,000 $6,720 $ 9,030 $ 15,750