A company had annual sales of $24,000,000 based on 360 days of actual sales. COGS for the year was $14,000,000. At the end of December they wanted to gauge their performance by evaluating their cash-to-cash cycle. The accounting department posted that the accounts receivable balance stood at $400,000 and the accounts payable balance at $320,000. The supply chain group reported $300,000 in raw material inventory, $400,000 in WIP and $100,000 in finished goods that had not been shipped to customers orders.

Q1:

What is the value of total inventory at the end of the year?

1. $400,000
2. $300,000
3. $800,000
4. $700,000
5. $100,000

Q2:

What is this company's cash-to-cash cycle? Please select the nearest value.

a) 8.23 days

b) 18.34 days

c) 6 days

d) 20.57 days