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BALANCE SHEET Assets Cash: 6.0 Accounts receivables: 14.0 Inventories: 12.0 Fixed assets: 40.0 TOTAL: 72.0 Liabilities Accounts payable: 10.0 Salaries: 2.0 Other current liabilities: 10.0

BALANCE SHEET

Assets

Cash: 6.0

Accounts receivables: 14.0

Inventories: 12.0

Fixed assets: 40.0

TOTAL: 72.0

Liabilities

Accounts payable: 10.0

Salaries: 2.0

Other current liabilities: 10.0

Long term debt: 12.0

Stockholders Equity: 38.0

TOTAL: 72.0

Average inventory over past 2 years equals 12.0

INCOME STATEMENT

Net sales: 100.0

Cost of sales: 60.0

Selling, geeral and admin expenses: 20.0

Other expenses: 15.0

Earnings after tax: 5.0

Calculate the following:

1.length of inventory conversion period?

2.length of receivables conversion period?

3.length of operating cycle?

4.length of the payables deferral period?

5.length of cash convertibe cycle?

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