The Robinson Company has the following current assets and current liabilities for these two years:

If sales in 2016 were $1.2 million, sales in 2017 were $1.3 million, and cost of goods sold was 70 percent of sales, how long were Robinson’s operating cycles and cash conversion cycles in each of these years? What caused them to change during this time?

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2016 2017 Cash and marketable securities $50,000 $50,000 Accounts receivable 300,000 350,000 Inventories 350,000 500,000 Total current assets $700,000 $900,000 Accounts payable $250,000 $200,000 Bank loan 150,000 Accruals 150,000 200,000 Total current liabilities $350,000 $600,000