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

a. Calculate Crimson’s days of sales outstanding and days of sales in inventory for each of the 5 years. What has Crimson accomplished in its attempts to better manage its investments in accounts 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.

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2014 2015 2016 2017 2018 Sales Net Receivables Total 4,310 5,213 7,944 11,639 18,491 617 807 1,089 1,355 2,229 Accounts Payable 425 671 699 1,560 2,465 Inventories-Total 330 440 644 377 350