Question

The balance sheet and income statement for Rocket Corporation are as follows:                                                                       
                                    Balance Sheet as of December 31, 2019                                                        
                                                                                    
ASSETS                                                                         LIABILITIES & EQUITY              

Cash & marketable sec.          $3,500             Accounts payable                    $38,000
Accounts Receivable               47,000             Taxes payable                         9,000
Inventory                                 13,000             Short-term borrowings           20,500
Total current assets                $63,500           Total current liabilities           $67,500
                        
Net P,P & E                              $452,000         Long-term debt                       $200,000
                                                                        Total liabilities                        $267,500
                                                                        Common stock at par             $80,000
                                                                        Additional paid-in capital       $45,000
                                                                        Retained earnings                   $123,000
TOTAL ASSETS                         $515,500         TOTAL LIABILITIES & EQUITY $515,500
                        
Income Statement for the year ending December 31, 2019                                                                                                                          
Sales                                                    $750,000                                 
Cost of goods sold                               540,000                                   
Gross profit                                         $210,000                                 
S, G & A                                               115,000                                   
Operating profit                                  $95,000                                   
Interest expense                                 14,994                                     
Earnings b4 tax                                   $80,006                                   
Income tax                                          20,002                                     
Net Income                                         $60,005                                   
                                                                                    
Rocketʹs stock was selling for $7 a share at the end of 2019, and there were 95 thousand shares outstanding. Rocket paid dividends of $0.5 a share in 2019           . Calculate Rocketʹs Cash Conversion Cycle for 2019.

A. -3 days

B.

32 days

C.

6 days

D.

57 days

Please show work, I would like to see why I am getting figures so different from the options

Answer 1