Operating Cycle Questions

1) Calculate the Operating Cycle based on the following information:

Assets. Cash Accounts Receivable Inventories (average) Net fixed assets Total Assets 12,000,000 6,000,000 4,000,000 12,000,000 34,000,000 Income Statement: Sales (50% Credit) Cost of Sales Selling, General & Admin Other Expenses/Taxes Net Income 40,000,000 15,000,000 10,000,000 5,000,000 10,000,000 Liabilities and Equity: Accounts Payable Sal., Ben., Wage Pay. Total Liabilities Stockholder's Equity Liabilities and Equity 4,000,000 5,000,000 9,000,000 25,000,000 34,000,000