Stich & Sell's annual credit sales are $18 million; the accounts receivable balance is $1.5 million; the cost of goods sold is $12.6 million; the inventory balance is $350,000 and the balance in accounts payable is $700,000.
a.Compute Stitch's operating cycle.
b.Compute Stitch's cash conversion cycle.

Question

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The Answer of Stich & Sell's annual credit sales are $18 million; the accounts receivable balance is $1.5 million; the cost of goods sold is $12.6 million; the inventory balance is $350,000 and the balance in accounts payable is $700,000.
a.Compute Stitch's operating cycle.
b.Compute Stitch's cash conversion cycle.

Stich & Sell's Annual Credit Sales Are $18 Million; the Accounts