Calculate the inventory to sale conversion period

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Castillo Products Company, described in Problem 7, improved its operations from a net loss in 2009 to a net profit in 2010. While the founders, Cindy and Rob Castillo, are happy about these developments, they are concerned about how long the firm took to complete its cash conversion cycle in 2010. Use the financial statements from Problem 7 to make your calculations. Balance sheet items should reflect the averages of the 2009 and 2010 accounts.

A. Calculate the inventory-to-sale conversion period for 2010.

B. Calculate the sale-to-cash conversion period for 2010.

C. Calculate the purchase-to-payment conversion period for 2010.

D. Determine the length of Castillo Products' cash conversion cycle for 2010.

Reference no: EM131123464

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