1)Show how to solved it on excel what function is used.

2)Show how to solved it on excel what function is used.

2 CASH CONVERSION CYCLE Sims Electric Corp. has beem striving for the last 5 years to improve its management of working capital. Historical data for the firm's sales, accounts receivable, inventories, and accounts payable are shown below a. Calculate Sims' days of sales outstanding and days of sales in inventory for each of the 5 years. Use a 365 day year b. Calculate Sims cash conversion cycle for each of the 5 years. Use a 365 day year. Evaluate Sims'overall management of its working 4 Note: Assume cost of goods sold is 70% of sales. 6 DATA Jan-06 Jan-08 Jan-10 8 Sales-Ne 9 Receivables 10 Accounts payable 11 Inventories 12 Cost of goods sold Sales 13 14 SOLUTION 3,475 538 447 293 7,759 $12,327 411 466 220 251 233 Eays of sales outstanding and days of sales in in for each of the 5 years. Use a 365 day year What has Sims 15 accomplisbed i its attermpts to better manage its investments in accournts receivable and in 16 17 Cost of goods sold 18 Days of sales outstanding 19Days of sales in inventory 20 Change in days of sales a 21 Change i days of sales in inventory w.r.t.year 1 utstanding w.r.t. year 23 b. Caleulate Sims'cash conversion cyele for esch of the 5 years. Use a 365 day year. Evahuate Sims' averall managememt of its working capital. 25| Days of payables 26 Cash conversion cycle 27 Change in cash conversion cycle w.rt.year 28 29