Operating and Cash Conversion Cycles. Consider the following selected financial data for the Cloud 9 Retailer:
|
Item
|
Beginning
|
|
Ending
|
|
Inventory
|
$5,000
|
|
$7,000
|
|
Accounts receivable
|
1,600
|
|
2,400
|
|
Accounts payable
|
2,700
|
|
4,800
|
|
Net credit sales
|
|
$50,000
|
|
|
Cost of goods sold
|
|
30,000
|
|
Calculate the operating and cash conversion cycles (CFM adapted).