Reference no: EM131507366

Please solved this question complete , somebody solved it incomplete. I need complete solution. You have to answer a, b and c.

The Greek Connection had sales of $32 million in 2009, and a cost of goods sold of $18.0 million. 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

$2,000

Accounts payable

$1,500

Accounts receivable

$3,950

Notes payable

$1,000

Inventory

$1,300

Accruals

$1,220

Total current assets

$7,250

Total current liabilities

$3,720

Net plant, property

Long-term debt

$3,000

and equipment

$8,500

Total liabilities

$6,720

Total Assets

$15,750

Common equity

$9,030

Total liabilities and equity

$15,750

a. Calculate The Greek Connection’s net working capital in 2009.

Net Working Capital is $ . (round to the nearest integer, in thousand dollar)  

b. Calculate the cash conversion cycle of The Greek Connection in 2009.

The Cash Conversion Cycle is days. (round to one decimal, assume 365 days/year)

c. The industry average days sales outstanding ratio is 28 days.

What would the cash conversion cycle for The Greek Connection have been in 2009 had it matched the industry average days sales outstanding?

If Accounts Receivable Days were 28, the Cash Conversion Cycle would be days. (round to one decimal, assume 365 days/year)