Your consulting firm was recently hired to improve the performance of ABC Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to analyze the firm's cash cycle. Using the following information and a 365-day year, what is the firms operating cycle?

Average inventory =	$75,000
Annual sales =	$875,000
Annual cost of goods sold =	$525,000
Average accounts receivable =	$160,000
Average accounts payable =	$25,000

	1.	118.8 days
	2.	107.6 days
	3.	101.5 days
	4.	105.6 days
	5.	79.2 days