Question: The average accounts receivable, inventory, and accounts payable information for fiscal year 2004 for Home Depot Inc. and Lowe's Inc. is provided as follows (in

The average accounts receivable, inventory, and accounts payable information for fiscal year 2004 for Home Depot Inc. and Lowe's Inc. is provided as follows (in millions):

In addition, the sales and cost of merchandise sold for each company were reported for 2004 as follows (in millions):

a. Calculate the cash conversion cycle for Home Depot and Lowe's. Round your calculations to the nearest whole day.
b. Interpret yourresults.

Home Depot Inc.Low's Inc. Average accounts receivable Average inventory Average accounts payable $1,298 9,576 5,462 $ 78 5,283 2,450 Home Depot Inc. 573,094 48,664 Lowe's Inc. Sales Cost of merchandise sold 536,464 24,165

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