The following table presents selected 2020 annual income statement items and balance sheet items for Toyota Motor and Apple. All figures are in millions. Use the information to answer the questions that follow.

a. Calculate and interpret the length of the operating cycle for Toyota and Apple.

b. Calculate and interpret the length of the cash conversion cycle for Toyota and Apple.

c. What are the advantages and disadvantages of Apple’s way of running operations compared to Toyota’s way?

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Sales Cost of goods sold Accounts receivable Inventory Accounts payable Toyota ¥29,929,992 24,522,364 8,709,065 2,434,918 2,434,180 Apple $274,515 169,559 16,120 4,061 42,296