Length of operating cycle for gladstone company

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The income statement of Gladstone Company for 2009 shows the total sales to be $135 million, while the cost of goods sold is 63% of sales. The cost of capital for Gladstone is 15%. All sales are on credit. We also have the following information about the company from its balance sheet, in $million.

12/31/09 12/31/08

Inventory 35 30

Accounts receivable 80 40

Accounts payable 30 20

A. Find the length of operating cycle for Gladstone Company.

B. Find the number of days in its cash cycle.

C. Find the NPV of its operating cycle.

Reference no: EM132484228

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