The Robinson Company has the following current assets and current liabilities for these two years.
|
|
2010
|
2011
|
|
Cash and marketable securites
|
$50,000
|
50,000
|
|
Accounts receivable
|
300,000
|
350,000
|
|
Inventories
|
350,000
|
500,000
|
|
Total current assets
|
700,000
|
900,000
|
|
Accounts payable
|
200,000
|
250,000
|
|
Bank Loan
|
0
|
150,000
|
|
Accurals
|
150,000
|
200,000
|
|
Total current liabilities
|
350,000
|
600,000
|
If sales in 2010 were $1.2 million, sales in 2011 were $1.3 million, and sot of goods sold was 70 percent of sales, how long were Robinson's operation cycles and cash conversion cycles in each of these years? What caused them to change during this time?