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.