Question 8: The following company has sales of $30 million and a cost of goods sold of $18 million. The balance sheet for period ending 31 December 2019 for this company appears below:

Assets $000	Liabilities and Shareholder Equity $000
Cash 2500	Accounts Payable 1600
Accounts Receivable 4400	Other Payables 900
Inventory 1500	Accruals 1100
Total Current Assets 8400	Total Current Liabilities 3600
Property Plant and Equipment 10500	Long Term Debt 2500
Total Assets 18900	Total Liabilities 6100
	Issued Equity 12800
	Total Liability & Shareholder Equity 18900

a. Calculate the companys net working capital in 2019.

b. Calculate the companys cash cycle for 2019.

c. The industry average for accounts receivable is 28 days. What would this companys cash cycle have been in 2019 if it had matched this industry average for accounts receivable? Comment on this new cash cycle outcome against b. above.