The Garcia Industries balance sheet and income statement for the year ended 2012 are as follows:

*The average inventory over the past two years also equals $12.0 million.
_____________________________Income StatementA
___________________________(in Millions of Dollars)
Net sales........................................................$100.0
Cost of sales......................................................60.0
Selling, general, and administrative expenses................20.0
Other expenses...................................................15.0
Earnings after tax................................................$ 5.0
a. Determine the length of the inventory conversion period.
b. Determine the length of the receivables conversion period. •

c. Determine the length of the operating cycle.
d. Determine the length of the payables deferral period. •

e. Determine the length of the cash conversion cycle.
f. What is the meaning of the number you calculated in part e?

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Balance Sheet in Millions of Dollars) Assets Cash Accounts receivable Inventories Fixed assets, net 6.0 14.0 12.0 40.0 $72.0 Liabilities and Stockholders Equity Accounts payable Salaries, benefits, and payroll taxes payable Other current liabilities Long-term debt Stockholders' equity $10.0 2.0 10.0 12.0 38.0 $72.0