Calculate defs operating cycle and cash conversion cycle

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Reference no: EM131884877

DEF had the following Current Assets and Liabilities for 2016, with sales of $1,500,000 and Cost of Goods Sold were 60% of Sales.

Given the following data calculate DEF's Operating Cycle and Cash Conversion Cycle.

Assets		Liabilities & Owners Equity
Cash	$75,000	Accounts Payable	$350,000
Accounts Receivable	$375,000	Loan	$125,000
Inventory	$400,000	Accruals	$250,000
Total Current Assets	$850,000	Owners Equity	$125,000
		Total Current Liab. & Owners Equity	$850,000

Reference no: EM131884877

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