1. Custom Cars an accounts payable period of 42 days and an accounts receivable period of 36 days. The company turns over its inventory 12.8 times per year. What is the length of Custom Cars operating cycle and what is the length of Custom Car’s cash cycle? (please show how you arrive at your answer)
2. Patti’s Perfect currently has a 77 day operating cycle. The company is concentrating on increasing its inventory turnover rate from 6.5 times per year to 9.0 times. What will the firm's new operating cycle be if Patti can effectively make this change? (to the nearest whole year and please show how you arrive at your answer)