problem: The Garcia Industries balance sheet & income statement for the year ended 2006 are as follows:
Balance sheet (in millions of dollars)
Assets Liabilities and Stockholders' Equity
Cash $ 6.0 Accounts Payable $10.0
Acc Receive 14.0 Salaries, benefits and payroll 2.0
Inventories 12.0 Other current liabilities 10.0
Fixed assets 40.0 Long term debt 12.0
$72.0 Stockholders' equity 38.0
$72.0
The average inventory over the past two years also equals $12.0 million
Income Statement (in millions of dollars)
Net sales $100.0
Cost of sales 60.0
Selling, gen/admin expenses 20.0
Other expenses 15.0
Net income $ 5.0
[A] find out the length of the inventory conversion period
[B] find out the length of the receivables conversion period
[C] find out the length of operating cycle
[D] find out the length of the payables deferral period
[E] find out the length of the cash conversion cycle
[F] Find the meaning of the number find outd in (e)?