Calculate production cycle and collection cycle

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Reference no: EM13728528

Given the following information

A: Company name: Microsoft corporation Amount in millions, figures are given for year ended 30 June, 2014 and 30 June, 2013 Receivables: 21485, 19118 Inventory: 2660, 1938 Payable: 13569, 10182 Sales: 86833, 77849 COGS: 26934, 20249 a) Inventory turnover = COGS / Average Inventory = 26294 / (2660+1938)/2 = 2.86 b) Receivable turover = Sales / Average receivables = 86833 / (21485+19118)/2 = 1.07 c) Payable turnover =Â COGS / Average payable = 26294 / (13569+10182)/2 = 0.55 Â

PLEASE ANSWER THE QUESTIONS BELOW

Calculate production cycle, collection cycle, and accounts payable cycle. You should show your work!

Should the company decrease cash conversion cycle? Please explain your answer.

Reference no: EM13728528

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