Maple Leaf Foods Inc. is one of Canada€™s largest meat processors. It produces fresh and processed pork and poultry products under the Maple Leaf and Schneiders brands. Selected financial information is presented below for the period 2009€“ 2012 ( in millions of dollars):

Required:
1. Compute the following ratios for each of the years 2010€“ 2012:
a. Trade payables turnover
b. Inventory turnover
c. Trade receivables turnover
2. One of the measures of a company€™s effectiveness in utilizing cash resources is the cash conversion cycle, which is the difference between the average number of days needed to convert inventory to cash and the average number of days to pay trade suppliers. Compute the cash conversion cycle for each of the years 2010€“ 2012. Did the company improve on its management of cash? Explain.

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2012 2011 2010 Net Sales Net trade receivables Inventories Cost of sales Trade payables $4,865 71 302 4,007 447 $4,894 134 293 4,126 482 $4,968 109 277 4,219 476 2009 $5,222 372 298 4,487 633