Using 2019-2020 financial reports of ABC,

a) Calculate the followings FOR 2019 AND 2020: (14 pts - 2 pts each) Show calculations.

Receivable turnover (use Account receivables and other debit balances)

Days in Receivables

Inventory turnover

Days in inventories

Payable turnover (use Accounts payables and other credit balances)

Days in payables

Cash conversion cycle

b) Comment on the cash conversion cycle you found in (a). Do you see an improvement in cash conversion cycle from 2019 to 2020? Explain. (min 50 words, 6 pts)

c) What would you suggest companies to improve their cash conversion cycles?