1. Suppose that Freddie's Fries has annual sales of $530,000; cost of goods sold of $405,000; average inventories of $12,000; average accounts receivable of $28,000, and an average accounts payable balance of $23,000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.)
50.82
1.45
9.36
30.09
2. TIPS Capital Return Consider a 4.00% TIPS with an issue CPI reference of 188.30. At the beginning of this year, the CPI was 199.10 and was at 205.60 at the end of the year. What was the capital gain of the TIPS in dollars? (Round your answer to 2 decimal places.)
$10.80
$6.50
$17.30
$34.51