Use the financial statements below to answer the questions that follow: Balance Sheet At December 31,2019 ($000) Assets Liabilities and Equity Current assets Current liabilities Cash $ 140,000 Accounts payable $ 480,000 Marketable securities 260,000 Notes payable 500,000 Accounts receivable 650,000 Accruals 80,000 Inventories 800,000 Total current liabilities $1,060,000 Total current assets $1,850,000 Long-term debt Fixed assets Bonds outstanding $1,300,000 Gross fixed assets $3,780,000 Bank debt (long-term) 260,000 Less: Accumulated depreciation 1,220,000 Total long-term debt $1,560,000 Net fixed assets $2,560,000 Shareholders equity Total assets $4,410,000 Preferred stock $ 180,000 Common stock (at par) 200,000 Paid-in capital in excess of par 810,000 Retained earnings 600,000 Total shareholders equity $1,790,000 Total liabilities and equity $4,410,000 Income Statement for year ended December 31, 2019 ($000) Sales revenue $6,900,000 Less: Cost of goods sold 4,200,000 Gross profits $2,700,000 Less: Operating expenses Sales expense $ 750,000 General and administrative expense 1,150,000 Leasing expense 210,000 Depreciation expense 235,000 Total operation expenses $2,345,000 Earnings before interest and taxes $ 355,000 Less: Interest expense 85,000 Net profit before taxes $ 270,000 Less: Taxes 81,000 Net profits after taxes $ 189,000 Less: Preferred stock dividends 10,800 Earnings available for common stockholders $ 178,200 Less: Dividends 75,000 To retained earnings $ 103,200 1. Calculate the firms operating and cash conversion cycles. Assume that purchases are 65% of Cost of Goods Sold.