The Stowe Manufacturing Company’s balance sheet and income statement for last year are as follows:

Balance Sheet

(in Millions of Dollars)

Assets Liabilities and Equity Cash and marketable securities $ 887 Accounts payable $ 724 Accounts receivable 2,075 Accrued liabilities Inventories* 2,120 (salaries and benefits) 332 Other current assets 300 Other current liabilities 1,665 Total current assets $5,382 Total current liabilities $2,721 Plant and equipment (net) 3,707 Long-term debt and other liabilities 1,677 Other assets 687 Common stock 296 Total assets $9,776 Retained earnings 5,082 Total stockholders’ equity $5,378 Total liabilities and equity $9,776

*Assume that average inventory over the year was $2,120 million, that is, the same as ending inventory.

Income Statement (in Millions of Dollars)

Net sales* $11,990 Cost of sales 6,946 Selling, general, and administrative expenses 2,394 Other expenses 581 Total expenses $ 9,921 Earnings before taxes 2,069 Taxes 825 Earnings after taxes (net income) $ 1,244

*All sales are credit sales.

Determine the length of Stowe’s:

a. Inventory conversion period

b. Receivables conversion period

c. Operating cycle

d. Payables deferral period

e. Cash conversion cycle LO1