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Accounts Receivable and Inventory Analyses for Kelloggs and General Mills

The following information was obtained from the fiscal year 2015 and 2014 financial statements included in Form 10-K of Kellogg Company and Subsidiaries and GeneralMills, Inc. and Subsidiaries. (Year-ends for Kelloggs are January 2, 2016, and January 3, 2015, and for General Mills are May 31, 2015, and May 25, 2014.) Assume all sales are on credit for both companies.

(in millions)			Kelloggs	General Mills
Accounts receivable, net*		End of 2015	$1,200	$1,500
		End of 2014	1,600	1,500
Inventories		End of 2015	1,300	1,600
		End of 2014	950	4,400
Net sales		2015	14,000	18,000
		2014	15,000	17,000
Cost of goods sold**		2015	9,000	12,000
		2014	8,000	11,000
*Described as receivables by General Mills.
**Described as cost of sales by General Mills.

Required:

Assume a 360-day year.

Using the information provided, compute the following for each company for 2015:

	Kelloggs		General Mills
a. Accounts receivable turnover ratio	fill in the blank 1	times	fill in the blank 2	times
b. Number of days' sales in receivables	fill in the blank 3	days	fill in the blank 4	days
c. Inventory turnover ratio	fill in the blank 5	times	fill in the blank 6	times
d. Number of days' sales in inventory	fill in the blank 7	days	fill in the blank 8	days
e. Cash-to-cash operating cycle	fill in the blank 9	days	fill in the blank 10	days