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

a. Calculate Crimson's days of sales outstanding, days of payables outstanding, and days of sales in inventory for each of the 5 years. (Assume a 365-day year. Hint: Assume that the firm's cost of goods sold equals 70% of sales.) What has Crimson accomplished in its attempts to better manage its investments in account 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. Assume a 365-day year.

Sales-Net Receivables-Total Acounts payable Inventories-Total 2014 4,325 613 436 345 2015 5,297 795 685 433 2016 7,939 1,074 685 641 2017 11,649 1,383 1,516 378 2018 18,425 2,210 2,404 348