Working Capital Management

Table:

Item	Amount ($)
Cash	500,000
Accounts Receivable	2,000,000
Inventory	1,500,000
Accounts Payable	1,200,000
Short-term Debt	300,000

Requirements:

1. Calculate the company’s current ratio.
2. Calculate the quick ratio.
3. Determine the cash conversion cycle (CCC) given the following additional data:
   • Days Sales Outstanding (DSO): 45 days
   • Days Inventory Outstanding (DIO): 60 days
   • Days Payable Outstanding (DPO): 30 days
4. Provide recommendations for improving the company’s working capital management.