Taylor Company has hired you to help them with cash management. The Company has experienced strong sales but struggles with cash flow. Taylor has provided you with the following data:

Account Balance

Average Accounts Receivable $$55,000$

Average Inventory $$60,000$

Average Accounts Payable $$30,000$

Credit Sales $$500,000$

Cost of Goods Sold $$300,000$

Do the following:

$1.$ Calculate the Cash Conversion Cycle.

$2.$ Interpret the results.

$3.$ What strategies do you recommend to improve the Cash Conversion Cycle?

$4.$ Explain the benefits of a negative Cash Conversion Cycle.