The Greek Connection had sales of $32 million and cost of goods sold of $12.8 milion in 2009. A simplified balance sheet for the firm appears? below: THE
GREEK CONNECTION Balance Sheet as of December? 31, 2009? (thousands of? dollars)
Assets Liabilities and Equity Cash 2,202
Accounts payable 1,549
Accounts receivable 4,241
Notes payable 1,000
Inventory 1,159
Accruals 1,220
Total Current Assets 7,602
Total current liabilities 3,769
Net property plant and equipment 8,500
Long term debt 3,000
total assets 16,102
Total liabilities 6,769
Common Equity 9,334
Total liabilities and equity 16,102
a. Calculate The Greek? Connection's net working capital in 2009.
b. Calculate the cash conversion cycle of The Greek Connection in 2009.
c. The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2009 had it matched the industry average for accounts receivable? days?