Question 1 Last year, Carraway Construction Company had sales of $57 billion, its cost of goods sold represents 80% of s

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Question 1 Last Year Carraway Construction Company Had Sales Of 57 Billion Its Cost Of Goods Sold Represents 80 Of S 1 (75.5 KiB) Viewed 38 times

Question 1 Last year, Carraway Construction Company had sales of $57 billion, its cost of goods sold represents 80% of sales, and the end of year balance sheet (in billions) are as follows: Assets $ Liabilities and Equity $ Cash 8.0 Account payable 6.0 Account Receivables 7.0 Notes payable 2.5 Inventory 2.5 Accrued items 7.5 Total current assets 17.5 Total Current liabilities 16.0 6.0 Net plan, Property & Equipment Long term debt 3.5 Total Assets Common Equity Total Liabilities & Equity 4.0 23.5 23.5 a) How much does Carraway Construction have invested in working capital? (1.5 marks) b) How long Carraway Construction's cash conversion cycle? (7 marks) c) What would happen to the cash conversion cycle if the company could stretch their payments to the suppliers up to 55 days? (1.5 marks) [Total: 10 Marks)