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NiKi International Pte Ltd reported healthy profits from its business for the past few years. However, the company still experience cash flow issues occasionally. In

NiKi International Pte Ltd reported healthy profits from its business for the past few years. However, the company still experience cash flow issues occasionally. In order to prevent such incidence to happen again, the Finance Manager had compiled the following information for analysis: 

20192020 

Annual credit sales $800,000 $970,000 

Cost of goods sold     $360,000 $560,000 

Accounts receivable balance  $270,000 $410,000 

Inventory balance $290,000$330,000 

Balance in accounts payable $200,000 $290,000



 Assume that there are 365 days in a year. 


A) Compute the operating cycle for Year 2020. 




B)  Determine the cash cycle for Year 2020.

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