Consider the following metrics:
Sales over the past 60 days = $10,000,000
Current AR balance = $750,000
Cost of Goods Sold (same period) = $6,000,000
Current Value of Inventory = $1,000,000
Current balance of AP = $250,000
Determine the cash to cash cycle time for this organization. A corporate goal is limit the time of purchase of raw materials and receipt of payment for the final product to under 4 business weeks. Is this company meeting that goal?