Use the AJ Cardenas 2014 income statement that follows and the balance sheet from S13-6 to compute the following:

In S13-6, Use the AJ Cardenas, Inc., balance sheet data on the shown below.

AJ Cardenas, Inc.

Balance sheets (adapted)

December 31, 2014 and 2013

AJ Cardenas, Inc.
Statement of Income (adapted)
Year Ended December 31, 2014 and 2013

a. AJ Cardenas Inc.’s rate of inventory turnover and days’ inventory outstanding for 2014.
b. Days’ sales in average receivables (days’ sales outstanding) during 2014 (round dollar amounts to one decimal place).
c. Accounts payable turnover and days’ payables outstanding for 2014. For this purpose, assume that the impact of inventories on cost of goods sold is immaterial, allowing you to use cost of goods sold rather than purchases in your computations.
d. Length of cash conversion cycle in days for 2014. Do these measures look strong or weak? Give the reason for youranswer.

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Increase (Decrease) Amount Percentage (Dollar amounts in millions) Assets 2014 2013 Current assets: Cash and cash equivalents Short-term investments S 1,240 900 70 250 81 363 1,664 340 37.8% 91.4 Receivables, net Inventories 54 (20)(8.0) 15 230 96 243 1,815 3,611 1,011 828 7,265 (120) (33.1) 7.0 15.1 14.7 Prepaid expenses and otheassets Total current assets Property, plant, and equipment, net Intangible assets Other assets 151 235 133 106 3,376 878 722 6,640 Total assets 625 4% Liabilities and Stockholders' Equity Current liabilities: Accounts payable Income tax payable Short-term debt Other . $100 1,000 39 18 70 1,227 3,500 1,117 5,844 900 61 11.1% (22) (36.1 73 1145 2,944 1,036 5,125 (34.1 7.2 18.9 7.8 14.0 Total current liabilities 82 556 81 719 Long-term debt Other liabilities Total liabilities Stockholders' equity: Common stock Retained earnings Accumulated other comprehensive (loss 116) 1,689 (154) 176) 1,515 Total liabilities and stockholders' equity 7,2656,640 1,573 (12.5) (6.2) Total stockholders' equity 1,421 625 A1 (Dollar amounts in millions) Revenues Expenses: 2014 2013 9,840S9,309 Food and paper (Cost of goods sold) Payroll and employee benefits Occupancy and other operating expenses General and administrative expenses Interest expense Other expense (income),net 2,639 2,138 2,413 1,217 184 19 1,230 385 2,644 2,211 2,375 1,148 6 11 Income before income taxes 12 Income tax expense 13 Net income 34) 848 267 845581 4