calculate the cash conversion cycle? explain.

July 2 Sales Forecast 3 Credit Sales 4 Cash Sales 100% 60% 40% April 31,000 31.00 18,600 12,400 May 35,000 21,000 14,000 June 38,000 22,800 15,200 39,000 23,400 15,600 August 32,000 19,200 12,800 s 80% 20% 14,000 14,880 4,160 33,040 15,200 16,800 3,720 35,720 15,600 18,240 4,200 38,040 12,800 18,720 4,560 36,080 50% 6 Cash Collections 7 Cash Sales 8 Credit Collections (previous month 9 Credit Collections (2 month prior) 10 Total Collections 11 12 Purchases 13 Ending Inventory 14 Cost of Goods Sold 15 Total Needed 16 Beginning Inventory 17 Purchases 18 19 Purchase Disbursements 20 This Month's Purchases 21 Last Month's Purchases 22 Total Disbursements for Purchases 23 24 Wages and Commissions 25 Wages, Fixed 26 Commissions 27 Total 28 17,500 15,500 33,000 17000 16,000 19,000 17,500 36,500 17.500 19,000 19,500 19,000 38,500 19,000 19,500 16,000 19,500 35,500 19,500 16.000 16,000 16,000 32,000 16,000 16,000 60% 40% 11,400 6,400 17,800 11,700 7600 19,300 9,600 7,800 17,400 9,600 6,400 16,000 8% 3,400 2.480 5,880 3,400 2,800 6,200 3,400 3,040 6,440 3,400 3,120 6,520 3,400 2,560 5,960 April May June July August 28 29 Disbursements for Wages 30 This Month's Wages 31 Last Month's Wages 32 Total 50% 50% 3,100 2,940 6,040 3,220 3,100 6,320 3,260 3,220 6,480 2,980 3,260 6,240 33 34 12,500 33,040 45,540 Cash Budget 12,500 17,088 35,720 38,040 48,220 55,128 15,748 36,080 51,828 19,300 6,320 3,000 17,800 6,040 3,400 8,300 35,540 12,500 48,040 (2,500) 17,400 6,480 3,000 12,500 39,380 12,500 51,880 3,248 16,000 6,240 3,000 1,000 26,240 12.500 38,740 13,088 12,500 28,620 12,500 41,120 7,100 35 Beginning Cash Balance 36 Cash Inflow from Sales 37 Total Cash Available (ex Financing) 38 Cash Disbursments 39 Merchandise 40 Wages and Commissions 41 Miscellaneous Expenses 42 Equipment Purchases 43 Total Disbursments 44 Minimum Cash Balance 45 Total Cash Needed 46 Excess of Total Cash 47 Financing 48 New Borrowing 49 Repayments 50 Loan Balance 51 Interest 52 Total Effects of Financing 53 Ending Cash Balance 54 55 Cash Conversion Cycle 56 Inventory-to-Sale 57 Sale-to-Cash 58 Purchase-to-Payment 59 Cash Conversion Cycle 2,500 2,500 2,500 2,500 12,500 (2,513) 17,088 15,748 - 25,588 0 0 0 0 0 60 61