Stratosphere Wireless is examining its cash conversion cycle. The company expects its cost of goods sold, which equal 80 percent of sales, to equal $480,000 this year. Stratosphere normally turns over inventory 24 times per year, accounts receivable are turned over 15 time per year and the account payable turnover is 40.
Calculate the cash conversion cycle
Calculate the average balances in accounts receivable, accounts payable and inventory