1. Given the following balance sheet and income statement, please calculate the cash conversion cycle and state what it means.

Balance Sheet (in million EUR)

Assets	2017	2018	Liabilities and shareholders equity	2017	2018
Current assets Cash Marketable securities Inventory Accounts receivable Total current assets	7.5 4.5 22 32 66	6 0 39 37.5 82.5	Current liabilities Bank loans Accounts payable Total current liabilities	10 21 31	7.5 30 37.5
Fixed assets Gross investment Less depreciation Net fixed assets	60 12 48	84 24 60	Long-term debt Net worth	8 75	7.5 97.5
Total Assets	114	142.5	Total liabilities and owners equity	114	142.5

Income Statement (2018, in million EUR)

Sales Operating costs Depreciation

510 444 12

EBIT Interest Pre-tax income Tax (50%) Net Income

54 3 51 25.5 25.5

Note: Dividend = 3