Sims Electric Corp. has been striving for the last 5 years to improve its management of working capital. Historical data for the firm's sales, accounts receivable, inventories, and accounts payable follow:

	JAN-10		JAN-11		JAN-12		JAN-13		JAN-14
Saleslong dashNet	2,843		3,422		5,274		7,745		12,308
Receivables	419		538		740		930		1,424
Acounts payable	274		435		468		1,049		1,626
Inventories	243		293		420		247		237

a.Calculate Sims' 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.

b.Calculate Sims' cash conversion cycle for each of the 5 years. Evaluate Sims' overall management of its working capital.Assume a 365-day year.