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The company shows you the following financial information for the 12-Month periods ended: 2018 2019 Sales 10,000,000 $15,000,000 COGS 5,900,000 8,800,000 Gross Profit 4,100,000 (41.0%)
| The company shows you the following financial information for the 12-Month periods ended: | |||||||
| 2018 | 2019 | ||||||
| Sales | 10,000,000 | $15,000,000 | |||||
| COGS | 5,900,000 | 8,800,000 | |||||
| Gross Profit | 4,100,000 (41.0%) 6,200,000 (41.3%) | 6200000 (41.30%) | |||||
| It also has the following selected Balance Sheet Data: | |||||||
| 12/31/2017 | 12/31/2018 | 12/31/2019 | |||||
| Cash | $100,000.00 | $84,000.00 | $22,000.00 | ||||
| Accounts Receivable | $800,000.00 | $860,000.00 | $2,420,000.00 | ||||
| Inventory | $460,000.00 | $720,000.00 | $1,340,000.00 | ||||
| Accounts Payable | $400,000.00 | $640,000.00 | $880,000.00 | ||||
| Can you calculate the followings: | |||||||
| 1. The cash conversion cycle. | |||||||
| 2. Operating Cycle | |||||||
| 3. Liquidity Ratio | |||||||
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