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5. Consider Table 4, which presents historical annual returns for stock 1 and stock 2, and Table 5 which outlines key income statement and working

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5. Consider Table 4, which presents historical annual returns for stock 1 and stock 2, and Table 5 which outlines key income statement and working capital entries for firm A. Table 4 2018 2% 4% 2019 1% 5% Returns for stock 1 (%) Returns for stock 2 (%) 2017 3% 4% 2016 4% 3% 2015 5% 4% Table 5 (in millions) Sales Cost of goods sold Accounts receivable Inventories Accounts payable Fiscal Year End 2017 $72,000 $64,000 $8,500 $7,800 $5,600 a) Consider Table 4. Calculate the average return and standard deviation of return for stock 1 and for stock 2. Detail all calculations that you use. b) Consider Table 4. Calculate the correlation between the returns on stocks 1 and 2. Detail all calculations that you use. c) Consider Table 5. Calculate accounts receivable turnover (ART) and days in receivables, inventory turnover ratio (ITR) and days in inventory, and accounts payable ratio (APR) and days in payables, for firm A. Detail all calculations that you use. d) Consider Table 5. Calculate the operating and cash cycles for firm A. Detail all calculations that you use

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