You have collected the following information for the Charger Co.

Item Beginning Ending

Inventory $5,000 $7,000

Accts. Receivable 1,600 2,400

Accts. Payable 2,700 4,800

Credit sales for the year just ended were $50,000, and cost of goods sold was $30,000.

a. How long does it take for Charger to collect on its receivables?

b. How long does merchandise stay around before it is sold?

c. How long does it take Charger to pay its bills?

d. What is Chargers operating cycle?

e. What is Chargers cash cycle?

I computed A. 11.68 days=365/(50,000/1,600) B. 73 days=365/(30,000/((5,000+7,000)/2)) C. 45.63 days=365/(30,000/((2,700+4,800)/2)) D. 84.68 days=(11.68+73)

E. 39.05 days=(84.68-45.63)

But I cannot find any other similar answers to that. Could someone explain if I am right or wrong? If I am wrong, can I get the correct answers and formulas? Thank you much.