The average accounts receivable, inventory, and accounts payable information for fiscal year 2004 for Home Depot Inc.

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 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.

Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,...