accounts payable turnover

Stratosphere Wireless is examining its cash conversion cycle. The company expects its cost of goods sold, which equal 80 percent of sales, to equal $480,000 this year. Stratosphere normally turns over inventory 24 times per year, accounts receivable are turned over 15 per year, and the accounts payable turnover is 40. Calculate (a) the cash conversion cycle and (b) the average balances in accounts receivable, accounts payable, and inventory