Answer elther A OR B only A. Smiley's annual credit sales are $12.5 million; the accounts receivable balance is $1.2 million; the cost of goods sold is $10.8 million; the inventory balance is $350,000, and the balance in accounts payable is $560,000. 1. Compute Smiley's operating cycle. [8 marks] II. Compute Smiley's cash conversion cycle [8.5 marks]