Working Capital (30 marks) Beachside Living Ltd manufactures and sells garden furniture in Sydney. Their inventory turnover is 6 times. Their accounts receivable turnover is at 45.625 days. Non-current assets are $620,000. Beachside Living has no non-current liabilities. Current assets are $280,000, which includes cash of $105,000. The current ratio is 2. Current liabilities include accounts payable and notes payable of $28,000. The income statement records sales of $600,000, COGS of $450,000 and operating expenses of $70,000. Required: 1. What is Beachside Living Ltd's Cash Conversion Cycle? (7 marks). 2. Explain in your own words the meaning of this Cash Conversion Cycle (3 marks) 3. Provide two suggestions of how this company can improve their Cash Conversion Cycle? (6 marks) 4. Calculate the Return on Assets for Beachside Living Ltd? (4 marks) 5. Calculate the Return on Equity for the Beachside Living Ltd? (4 marks) 6. If the accounts receivables turnover is at 7.5 times, what is the impact on Return on Assets? (6 marks)