A company shows the following balance sheet as of 31/12/2019 (in 000 $)

a) Compute its net operating cycle in days, knowing that its sales were 25 million and COGS were 22 million (and a year has 365 days).

b) What do you conclude and recommend?

Assets Fixed assets Inventories Account receivables Cash Total Liabilities 25,000 Equity 15,000 Long term debt 4,000 Short term loans Account payable 44,000 Total 15,000 3,000 24,000 2,000 44,000