Two years of financial statement data for the Munich Export Corporation are shown below.

A. Calculate the inventory-to-sale, sale-to-cash, and purchase-to-payment conversion periods for Munich Exports for 2016.

B. Calculate the length of Munich Exports€™ cash conversion cycle for 2016.

       

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BALANCE SHEET (Continued) 2015 2016 $ 130,000 50,000 90,000 270,000 400,000 50,000 200,000 80,000 $1,000,000 Accounts payable Accruals $ 180,000 70,000 Bank loan 90,000 340,000 550,000 50,000 200,000 160,000 Total current liabilities Long-term debt Common stock ($0.50 par) Additional paid-in-capital Retained earnings Total liabilities and equity $1,300,000 INCOME STATEMENT 2015 2016 $1,300,000 780,000 520,000 $1,600,000 960,000 640,000 160,000 150,000 55,000 275,000 55,000 220,000 Net sales Cost of goods sold Gross profit Marketing 130,000 150,000 40,000 200,000 45,000 155,000 General and administrative Depreciation EBIT Interest Earnings before taxes Income taxes (40% rate) 62,000 88,000 $ 132,000 Net income $ 93,000