The financial statements for Alex Ltd are presented below:

Statement of comprehensive income for Alex Ltd for the year ending 30 June 2019

Sales (Credit)		$20,000
Cost of sales
Inventory01 July 2018	2,500
Purchases (Credit)	6,000
Inventory30 June 2019	(4,500)	(4,000)
Gross profit		16,000
Selling and administrative expenses		(5,450)
Depreciation		(2,320)
Profit before tax		8,230
Income tax expense		(2,420)
Profit after tax		5,810
Other comprehensive income
Total comprehensive income		5,810

Statement of financial position for Alex Ltd as at 30 June 2019

	01/07/2018	30/06/2019
Share capital	$1,000	$1,000
Retained earnings	500	6,310
Bank Loan	2,000	2,000
Accounts payable	1,200	1,500
Total Equity and Liabilities	4,700	10,810
Land and Building	2,000	4,800
Accounts receivable	200	1,510
Inventory	2,500	4,500
Total assets	4,700	10,810

Required:

1. Calculate the operating cycle for year 2019 using closing accounts receivable as the average accounts receivable.

2. Calculate the 2019 cash (conversion) cycle using closing accounts receivable and closing accounts payable as the average.

3. Comment on the operating cycle and inventory turnover of the firm.