Pepsi	Last year
Days Sales Outstanding (A/R period)	41.59
Days Inventory (Inventory Period)	41.93
Payables Period (A/P period)	154.33

3. Using this information, compute the Cash Cycle for this company.

Cash Cycle = Days Sales Outstanding + Days Inventory Payables Period

Questions

• What is the length of this companys cash cycle? (Show us your work!)
• What information does this give you about the companys need for cash?
• Do you feel that this company must seek out short-term financing? Please explain your response.
• Discuss whether Martin and Samantha should be concerned about their companys cash cycle of 73 days.