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# I keep getting the same answer for this question. What am I doing wrong? See steps and question with my

American Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, and using a 365-day year, calculate cash conversion cycle

Round the answers to two decimal places

Balance Sheet December 31, 2010

Cash and marketable securities \$102,000

Accounts payable  \$287,000

Accounts receivable \$299,000

Notes payable \$61,200

Inventories \$628,000

Accrued expenses \$51,900

Prepaid expenses \$10,300

Total current liabilities \$400,100

Total current assets \$1,039,300

Long-term debt \$415,000

Gross fixed asset \$1,502,000

Par value and paid-in-capital \$376,000

Less: accumulated depreciation \$312,000

Retained Earnings \$1,038,200

Net fixed assets  \$1,190,000

Common Equity 1,414,200

Total assets \$2,229,300

Total liabilities and owner's equity \$2,229,300

Income statement, Year of 2010

Net sales (all credit) \$6,387,700.00

Less: Cost of goods sold \$4,726,898.00

Depreciation expense \$148,000.00

EBIT \$1,167,802.00

Interest expense \$50,600.00

Earnings before taxes \$1,117,202.00 Income taxes \$446,880.80

Net income  \$670,321.20

Here are the steps I am using:

DIO = Days Inventory Outstanding

= Inventory/COGS * 365

= (628,000/4,726,898) *365

= 48.49

DSO = Days Sales Outstanding

= Accounts Receivable/(Credit Sales Per Day/365)

=299,000 / (6,387,700/365)

=299,000 / 17,500.55

=17.09

DPO = Days Payable Outstanding

= Accounts Payable/ (COGS/DAYS)

= 287,000 / (4,726,898/365)

= 287,000 / 12,950.41

= 287,000 / 12,950.41

= 22.16

=DIO + DSO - DPO

= 48.49 + 17.09 - 22.16

= 43.42

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