8. (Cash Conversion Cycle) 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. MUNICH EXPORTS CORPORATION BALANCE SHEET 2015 Cash $ 50,000 Accounts receivable 200,000 Inventories 450.000 Total current assets 700,000 Fixed assets, net 300,000 Total assets $1,000,000 2016 $ 50.000 300,000 570,000 920,000 380,000 $1,300,000 BALANCE SHEET (Continued) Accounts payable Accruals Bank loan Total current liabilities Long-term debt Common stock ($0.50 par) Additional paid-in-capital Retained earnings Total liabilities and equity 2015 $ 130,000 50,000 90,000 270,000 400,000 50,000 200,000 80,000 $1,000,000 2016 $ 180,000 70,000 90,000 340,000 550,000 50,000 200,000 160,000 $1,300,000 2015 2016 INCOME STATEMENT Net sales Cost of goods sold Gross profit Marketing General and administrative Depreciation EBIT Interest Earnings before taxes Income taxes (40% rate) Net income $1,300,000 780,000 520,000 130,000 150,000 40,000 200,000 45,000 155,000 62,000 $ 93,000 $1,600,000 960.000 640,000 160,000 150,000 55,000 275,000 55,000 220,000 88,000 $ 132,000