In the early 1990s, Cranston Dispensers, Inc. was quick to realize that concern for the environment would cause many consumer product manufacturers to move away from aerosol dispensers to mechanical alternatives that pose no threat to the ozone layer.In the following decades, most countries banned the most popular aerosol propellants, first chlorofluorocarbons and then hydrocholrofluorocarbons. As the leading manufacturer of specialized pump and spray containers for a variety of products in cosmetics, household cleaning supplies, and pharmaceutical industries, Cranston experienced a rapid increase in sales and profitability after it made this strategic move.At that time, the firm focused much of its attention on capturing market share and keeping up with demand.

For most of 20x4 and 20x5, however, Cranston's share price was falling while shares of other companies in the industry were rising.At the end of fiscal 20x5, the company hired Susan McNulty as the new treasurer, with the expectation that she would diagnose Cranston's problems and improve the company's financial performance relative to that of its competitors.She decided to begin the task with a thorough review of the company's working capital management practices.

While examining the company's financial statements, she noted that Cranston had a higher percentage of current assets on its balance sheet than other companies in the packaging industry.The high level of current assets caused the company to carry more short-term debt and to have higher interest expense than its competitors.It was also causing the company to lag behind its competitors on some key financial measures, such as return on assets and return on equity.

In an effort to improve Cranston's overall performance, Susan has decided to conduct a comprehensive review of working capital management policies, including those related to the cash conversion cycle, credit policy, and inventory management.Cranston's financial statements for the three most recent years follow.

Cranston Dispensers

Income Statement

($ in thousands)

Account

20x3

20x4

20x5

Sales

2,860

3,302

3,884

Cost of Goods Sold

1,856

2,172

2,568

Gross Profit

1,004

1,130

1,316

Selling & Administrative

406

478

550

Depreciation

200

230

247

Earnings Before Interest and Taxes

398

422

519

Interest Expense

20

30

25

Taxable Income

378

392

494

Taxes

79

82

104

Net Income

299

310

390

Cranston Dispensers

Balance Sheet

($ in thousands)

Account

20x3

20x4

20x5

Current Assets

Cash

236

276

341

Accounts Receivable

420

742

822

Inventory

388

512

595

Total Current Assets

1044

1530

1758

Net Fixed Assets

1,572

1,691

1,822

Total Assets

2,616

3,221

3,580

Current Liabilities

Accounts Payable

204

288

332

Accrued Expenses

292

435

443

Short-term Notes

243

491

503

Total Current Liabilities

739

1214

1278

Long-term Debt

289

324

398

Other Long-term Liabilities

147

154

239

Total Liabilities

1,175

1,692

1,915

Owners' Equity

Common Equity

1,441

1,529

1,665

Total Liabilities & Equity

2,616

3,221

3,580

1.Determine Cranston's average production cycles for 20x4. Round your answer to the nearest whole number.

2.Determine Cranston's average production cycles for 20x5. Round your answer to the nearest whole number.