Calculate the operating cycle and the cash conversion cycle of "Realidad SA". Half of the answer...

Calculate the operating cycle and the cash conversion cycle of "Realidad SA". Half of the answer is the interpretation of it.

2020 2019

Customers $ 153,000

$ 197,000

Suppliers $ 182,000 $ 110,000

Purchases $ 321,000 $ 255,000

Inventories $ 101,000 $ 79,000

Sales $ 650,000 $ 528,000

Sales are 80% on credit and 20% in cash.

Purchases are 60% on credit and 40% in cash

Cost of sales is 40% of sales for each period

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Calculate the operating cycle and the cash conversion cycle of "Realidad SA". Half of the answer...

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