The following information was obtained from the fiscal year 2012 and 2011 financial statements included in Form 10-K of Kellogg Company and Subsidiaries and General Mills, Inc. and Subsidiaries. (Year-ends for Kellogg€™s are December 29, 2012, and December 31, 2011 and for General Mills are May 27, 2012, and May 29, 2011.) Assume all sales are on credit for both companies.

^aDescribed as €˜€˜receivables€™€™ by General Mills.
^bDescribed as €˜€˜cost of sales€™€™ by General Mills.

Required
1. Using the information provided, compute the following for each company for 2012:
a. Accounts receivable turnover ratio
b. Number of days€™ sales in receivables
c. Inventory turnover ratio
d. Number of days€™ sales in inventory
e. Cash-to-cash operating cycle
2. Comment briefly on the liquidity of each of these two companies.

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(in millions) Accounts receivable, neta Kellogg's General Mills End of 2012 End of 2011 End of 2012 End of 2011 $ 1,454 $ 1,323.6 1,162.3 1,478.8 1,188 Inventories 1,365 1,174 1,609.3 16,657.9 Net sales 2012 14,197 13,198 2011 14,880.2 Cost of goods sold 10,613.2 2012 8,763 8,046 2011 8,926.7