Operating and Cash Conversion Cycles. Consider the following selected financial data for the Cloud 9 Retailer:
|
Item |
Beginning |
Ending |
|
|
Inventory |
$5,000 |
$7,000 |
|
|
Accounts receivable |
1,600 |
2,400 |
|
|
Accounts payable |
2,700 |
4,800 |
|
|
Net credit sales |
$50,000 |
||
|
Cost of goods sold |
30,000 |
Calculate the operating and cash conversion cycles (CFM adapted).