2) 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.

(a) Calculate the cash conversion cycle

(b) Calculate the average balances in accounts receivable, accounts payable and inventoryIdentify your final answer with a proper label and double underline.

Begin by identifying what you know:

Cost of goods sold = $

Cost of goods sold =

Inventory Turnover =

Accounts Receivable Turnover =

Accounts Payable Turnover =