QUESTION: Income statements and balance sheets of an international trade company for years 2019 and 2020 are given below (See Table 1 and Table 2). Suppose the company's total cash costs and expenses are 13,640,000 TL and 17,800,000 for 2019 and 2020 respectively. Based on these information calculate the cash conversion cycles of the company for years 2019 and 2020, and discuss. TABLE 1. INCOME STATEMENT INCOME STATEMENT Sales revenue Sale returns Net sales revenue Cost of goods sold Gross Margin Marketing, selling, and delivery expenses General administrative expenses Operating income Other gains and losses Financing expenses Period income Corporate tax Net period income 2020 80,000 -2,000 78,000 -60,000 18,000 -5,600 -5,000 7,400 -1,500 -3,000 2,900 -580 2,320 2019 61,200 -1,200 60,000 -40,000 20,000 -4,850 -4,150 11,000 - 1,000 -2,000 8,000 -1,600 6,400 TABLE 2. BALANCE SHEET 2020 2019 10,000 21,000 23,000 3,000 57,000 8,000 14,000 16,000 2,000 40,000 92,280 92,280 149,280 73,800 73,800 113,800 ASSETS Current Assets Cash and cash equivalents Trade receivables (net) Inventories Prepaid expenses and accrued revenues Total current assets Non-current (fixed) Assets Tangible assets (net) Total non-current (fixed) assets TOTAL ASSETS LIABILITIES Short-term Liabilities Bank loans (ST) Trade payables Taxes and other duties payable Provision for corporate tax Total short-term liabilities Long-term Liabilities Bank loans (LT) Total long-term liabilities Total liabilities Shareholder's Equity TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 7,000 16,000 1,700 580 25,280 9,000 12,000 2,200 1,600 24,800 45,000 45,000 70,280 79,000 149,280 35,000 35,000 59,800 54,000 113,800