Using the information for Smith Company in E 10, compute the operating cycle and finance period for both years. Comment on the change in the company’s operating cycle and required days of financing from 2010 to 2011.

2011 2010 $ 27,200 $ 20,800 34,400 Cash Markctable securitics 14,400 89,600 108,800 $240,000 $ 80,000 $645,120 435,200 $209,920 Accounts reccivable (net) Inventory Total current assets 71,200 99,200 $225,600 $ 56,400 $441,440 406,720 $ 34,720 Accounts payable Net sales Cost of goods sold Gross margin