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Please question f and g (I want an analysis more than the calculations) thank you...

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Accounting

Please question f and g (I want an analysis more than the calculations) thank youimage

f. Yes, borrowing is needed as at end of quarter 2 2022. Total amount needed is 0.4 Millions
g. Inventory Turnover days = Inventory/Sales x 365 = 43,8 It means inventory takes on average 43.8 days to be turned into cash
Receivable Turnover days = Receivables/Sales x 365 = 109,5 It takes 109.5 days to collect receivables and convert them into cash
Purchases Turnover days = Payables/COGS x 365 = 68,82857143 It takes 68.83 days to pay my accounts payable from cash
Cash Conversion Cycle 84,47142857 This is the cycle to purchase my inventories and perform my sales and collect receivables and pay the accounts payables
Cash burn = 0,3025585 The company is burning 0.303 Millions dollars in operating expenses and accrued liabilities
Cash build = 2,57 The company is building 2.57 Million dollars on its sales an receivables collection
Net Cash burn = -2,2674415 It means the company if building more cash than burning it

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