5.Recent financial statements of Toys & Co Inc. showed following information:

Total sales $800,000 Current assets $150,000.

Cash, $25,000 GP margin 40%.

Current liabilities, $130,000 Inventories $50,000.

Receivables $120,000

a. Calculate Average Collection period.

b. Calculate Inventory turnover and Operating cycle

c. If you want inventory turnover of 4 times, what should be the inventory amount?

d. If receivables are 80,000 what would be average collection period considering 360 day year?

e. Calculate new Operating cycle on the basis of information in c and d.Immersive Reader