The Russian Connection had sales of

$30.8 million in 2016, and a cost of goods sold of

$12.3 million. A simplified balance sheet for the firm appears below:

a. calculate The Russian Connection's net working capital in 2016.

b. calculate the cash conversion cycle of The Russian Connection in 2016.

c. the industry average accounts receivable days is 30 days

what would the CCC for The Russian Connection have been in 2016 had it met the industry average for accounts receivable days?

(Hint: Use a 365-day year.)

THE RUSSIAN CONNECTION

BALANCE SHEET as of 31 December 2016 (thousands of dollars)

Assets			Liabilities and Equity
Cash	$ 2 113		Accounts payable	$ 1 727
Accounts receivable	4 159		Notes payable	1 000
Inventory	1 413		Accruals	1 220
Total current assets	$ 7 685		Total current liabilities	$ 3 947
Net plant, property and equipment	$ 8 500		Long-term debt	$ 3 000
Total assets	$ 16 185		Total liabilities	$ 6 947
			Issued equity	$ 9 238
			Total liabilities and equity	$ 16 185