These are the financial statements for Mountains Trek, Inc.

Respond to the following question
1. Calculate the inventory conversion period for Mountains Trek, Inc.
2. Calculate the receivables collection period for Mountains Trek, Inc.
3. Calculate the payables deferral period for Mountains Trek, Inc.
4. Calculate the cash conversion cycle for Mountains Trek, Inc.
5. If Mountains Trek, Inc. requires $750 per day to operate, how many liquid assets should it hold based on its cash conversion cycle?

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Income statement for the year 2014 Sales Cost of Goods Sold Fixed Costs Depreciation EBIT Interest expense Taxes (40%) Net Income 220,000 120,000 40,000 15,000 45,000 10,000 14,000 21,000 Balance Sheet at the end of the year 2014 Cash Accounts Receivable |50,000 Inventories Fixed Assets 10,000 Accounts Payable Notes Payable Accruals Long Term Debt Common Stock Retained Earmings Total Liabilities and Equity250,000 35.000 10,000 40.000 30,000 5,000 130,000 60.000 130,000 Total Assets 250,000