Income Statements(in$Thousands)
	2019	2020
Netsales	3,750	4,500
Costofgoodssold	2,250	2,700
Grossprofit	1,500	1,800
Operatingexpenses	670	860
Interest	30	40
Incomebefore taxes	800	900
Incometaxes	250	300
Netincome	550	600
BalanceSheets(in $Thousands)
	2019	2020
Cash	400	150
Accountsreceivable	500	800
Inventories	1,450	2,000
Totalcurrent assets	2,350	2,950
Grossfixed assets	2,000	2,800
Lessaccumulateddepreciation	-950	-1,250
Netfixedassets	1,050	1,550
Totalassets	3,400	4,500
Accountspayable	300	400
Bankloan	150	250
Accruedliabilities	100	150
Totalcurrent liabilities	550	800
Long-termdebt	150	150
Common stock	850	1,100
Retainedearnings	1,850	2,450
Totalliabilities and equity	3,400	4,500

REQUIRED:

1. Using year-end data, calculate the inventory-to-sale conversion period, the sale-to-cashconversionperiod, andthepurchase-to-paymentconversion periodfor2019and2020.
2. Determine the cash conversion cycle for each year and discuss the changes, if any thattookplace.