guideline showing the number of days in which current assets are removed from cash. The fewer the days removed, the better the entity's liquidity. An illustrative computation follows:
                           Amount                x                       Days Away
                                                                              from Cash = Total
Cash                   $ 20,000               x
Accounts
Receivable               50,000               x       30            $1,500,000
Inventory                  80,000               x       50             4,000,000
                             $150,000                                       $5,500,000

                           $5,500,000
             Index=    $150,000 = 36.7 days