The Hopewell Pharmaceutical Company's balance sheet and income statement for last year are as follows:

Balance Sheet (in Millions of Dollars)

AssetsLiabilities and EquityCash and marketable securities$1,200

Accounts payable***$800

Accounts receivable*1,300

Accrued liabilities

Inventories**700(salaries and benefits)100

Other current assets 200

Other current liabilities900

Total current assets$3,400

Total current liabilities$1,800

Plant and equipment (net)2,600

Long-term debt and other

Other assets1,100

liabilities900

Total assets$7,100

Common stock2,300

Retained earnings2,100

Total stockholders' equity$4,400

Total liabilities and equity$7,100

*Assume that average accounts receivable are the same as ending accounts receivable.

**Assume that average inventory over the year was the same as ending inventory.

***Assume that average accounts payable are the same as ending accounts payable.

Income Statement (in Millions of Dollars)

Net sales$6,800

Cost of sales1,400

Selling, general, and administrative expenses2,500

Other expenses900

Total expenses$4,800

Earnings before taxes2,000

Taxes800

Earnings after taxes (net income)$1,200

1. Determine Hopewell's cash conversion cycle. Assume that there are 365 days per year. Do not round intermediate calculations. Round your answer to one decimal place.

__________days.

1. Give an interpretation of the value computed in part a.
2. The number of the cash conversion cycle denotes to what extent the time interval of the collection of cash receipts from product sales-Select- exceeds or is less than? the time interval of the cash payments for the various resources used by the firm.