Historical data for the firm's sales, accounts receivable, inventories, and accounts payable for the Crimson Mfg. Company follow:

a. Calculate Crimson's days of sales outstanding, days of payables outstanding, and days of sales in inventory for each of the 5 years. (Assume a 365-day year. Hint: Assume that the firm's cost of goods sold equals 70% of sales.) What has Crimson accomplished in its attempts to better manage its investments in account receivable and inventory?

b. Calculate Crimson's cash conversion cycle for each of the 5 years. Evaluate the firm's overall management of its working capital. Assume a 365-day year.

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2014 2015 2016 2017 2018 Sales-Net 4,325 5,297 7,939 11,649 18,425 Receivables-Total 613 795 1,074 1,383 2,210 Acounts payable 436 685 685 1,516 2,404 Inventories-Total 345 433 641 378 348