Fill in the yellow shaded boxes in the workbook for the Days of Inventory, Days of Receivables, Days of Accounts Payable, Operating Cycle, and Cash Conversion Cycle for both companies

FINANCIAL STATEMENTS Income Statement Revenue ($ million) Cost of Goods Sold Net Receivables Inventories Assets Accounts Payable 2018 71,309 48,401 2017 68,619 45,210 2016 65,017 42,533 2015 59,074 38,504 2014 56,223 36,665 2018 108,203 71,043 1,936 13,925 7,755 Home Depot 2017 2016 100,904 94,595 66,548 62,282 1,952 2,029 12,748 12,549 7,244 7,000 2015 88,519 58,254 1,890 11,809 6,565 2014 83,176 54,222 1,484 11,079 5,807 12,561 8,279 11,393 6,590 10,458 6,651 9,458 5,633 8,911 5,124 One Day's Sales One Day's Cost of Goods Sold 2 Days of Inventory 3 Days of Receivables 4 Days of Payables 5 Operating Cycle Cash Conversion Cycle Note: The O in the Net Receivables row for Lowes is not a typo. Lowes sells all of its receivables and thus they transfer all of the credit risk to a bank. The bank manages the accounts receivable and receives a portion of the face value as compensation. 2 FINANCIAL STATEMENTS Income Statement Revenue ($ million) Cost of Goods Sold Net Receivables Inventories Assets Accounts Payable 2018 71,309 48,401 2017 68,619 45,210 2016 65,017 42,533 2015 59,074 38,504 2014 56,223 36,665 2018 108,203 71,043 1,936 13,925 7,755 Home Depot 2017 2016 100,904 94,595 66,548 62,282 1,952 2,029 12,748 12,549 7,244 7,000 2015 88,519 58,254 1,890 11,809 6,565 2014 83,176 54,222 1,484 11,079 5,807 12,561 8,279 11,393 6,590 10,458 6,651 9,458 5,633 8,911 5,124 One Day's Sales One Day's Cost of Goods Sold 2 Days of Inventory 3 Days of Receivables 4 Days of Payables 5 Operating Cycle Cash Conversion Cycle Note: The O in the Net Receivables row for Lowes is not a typo. Lowes sells all of its receivables and thus they transfer all of the credit risk to a bank. The bank manages the accounts receivable and receives a portion of the face value as compensation. 2