Question: 4. In the table below is data for two companies in a very competitive industry. ($000) Company A Company B Revenues(net sales) 70, 500 80,000

4. In the table below is data for two companies in a very competitive industry.

($000)

Company A

Company B

Revenues(net sales)

70, 500

80,000

Cost of Goods Sold

38,540

45,570

Average inventory

7,050

8,300

Average receivable

5,510

7,255

Average payable

7,015

8,600

Receivable turnover days

?

?

Inventory turnover days

?

?

Payable turnover days

?

?

Operating cycle

?

?

Cash Conversion Cycle

?

?

Calculate the missing data signified by ? and evaluate the relative performance (turnover) of both companies. (Which company has better performed?)

PLEASE NOTE THAT

You have to show your calculations.

You cant get full grade by solving the problems with only the use of excel formulas. You have to solve the problems step by step.

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