The Greek Connection had sales of $32 million in 2012The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below:
THE GREEK CONNECTION
As of December 31, 2012 (in $ thousand)
Liabilities and Equity
Total current assets
Total current liabilities
Net plant, property,
Total liabilities and equity
a. Calculate The Greek Connection’s net working capital in 2012.
b. Calculate the cash conversion cycle of The Greek Connection in 2012.
c. The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2012 had it matched the
industry average for accounts receivable days