1. Babson consulting firm was recently hired to improve the performance of Walmart Inc. which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firms cash conversion cycle. Using the following information and a 365-day year, what is the firms present operating and cash conversion cycles?

Opening Inventory = $50,000

Annual Cash sales = $250,000

Opening Accounts Payable = $25,000

Closing Inventory = $20,000

Opening Accounts Receivable = $75,000

Annual Credit Sales = $750,000

Annual Cost of Goods Sold = $450,000

Closing Accounts Receivable = $105,000

Closing Accounts Payable = $25,000.