The projected income statement and balance sheet of Martinez Products Corporation has been provided. You are required to evaluate the inventory-to-sale conversion period and sale-to-cash conversion period of the company. Interpret the results. Please solve within 30 minutes.

MARTINEZ PRODUCTS CORPORATION PROJECTED INCOME STATEMENT FOR YEAR 1 Sales Cost of goods sold Gross profit Operating expenses Depreciation Earnings before interest and taxes Interest Earnings before taxes Taxes (25%) Net income $200,000 100,000 100,000 75,000 4,000 21,000 1,000 20,000 5,000 $ 15,000 MARTINEZ PRODUCTS CORPORATION PROJECTED BALANCE SHEET FOR END OF YEAR 1 Cash Accounts receivable Inventories Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets $ 10,000 20,000 20,000 50,000 54,000 4,000 50,000 $100,000 Accounts payable Accrued liabilities Bank loan Total current liabilities Common stock Retained earnings Total equity Total liabilities and equity $ 15,000 10,000 10,000 35,000 50,000 15,000 65,000 $100,000