(Cash management) Indianapolis Tire Company manufactures tires that are sold to both car manufacturers and tire wholesalers. The following data have been taken from a recent balance sheet.

Discuss recommendations that Indianapolis Tire Company managers could use to improve its cash position. Focus your discussion on the operat¬ ing cycle rather than on other means of raising cash. LO.1

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Current assets (in millions) Cash $ 10 Accounts receivable 140 Finished goods inventory Work in process inventory Raw materials inventory 25 170 90 Current liabilities Accounts payable Other $ 22 7