1. Cost of goods sold is $2,500,000 and inventory is $600,000. Calculate the days on-hand.
Sales on account are $6,000,000, and accounts receivable are $2,000,000. Calculate the days outstanding.
2. Cost of goods sold is $2,500,000, and accounts payable are $450,000. Compute the days in accounts payable.
3. Using the information from the previous two questions, compute the cash conversion cycle