With the information below, calculate the A/R days, Inventory Days and the A/P days, and with this information, calculate the Cash Cycle. Use 2015 data.

Balance Sheet
	2014	2015		2014	2015
Cash	$123,700	$87,051	A/P	$1,389,070	$1,676,900
A/R	$1,234,500	$1,435,000	N/P	$391,330	$522,505
Inventory	$1,135,300	$1,534,500
Total CA	$2,493,500	$3,056,551	Total CL	$1,780,400	$2,199,405
Net FA	$1,786,800	$2,087,900	LT Debt	$1,234,900	$1,416,790
			Equity	$1,265,000	$1,528,256
Total Assets	$4,280,300	$5,144,451	Total Liab. & Equity	$4,280,300	$5,144,451
Income Statement	2015
Revenues	$12,456,430
Cost of Goods Sold	$9,807,650
Gross Profit	$2,648,780
Expenses	$1,087,600
Depreciation	$887,640
EBIT	$673,540
Interest Expense	$234,780
Taxable Income	$438,760
Taxes (40%)	$175,504
Net Income	$263,256

Answer rating: 100% (QA)

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