The information below is from the 2013 financial statements of Revlon, the beauty products company.

Required

Use Revlon’s financial information to answer the following questions: 

a. What is Revlon’s operating cycle (in days) in 2013 and 2012? Comment on the change from year to year. 

b. What is Revlon’s cash operating cycle (in days) in 2013 and 2012? Comment on the change from year to year. 

c. U se Revlon’s financial information to compare the components of Revlon’s operating cycle and cash operating cycle to L’Oréal’s for 2013. The table below provides the amounts for L’Oréal from worked Example 9.16 in the text.

Balance Sheet Information (in million of dollars)* At December 31 Inventories Acccunts Recaivable Acccunts Payable 2013 175.00 253.50 165.70 2011 $111.00 212 89.90 2012 $ 114.70 216.00 101.90 Income Statement Infomation For the year Sales (all credit) Cost of Goods Solod 2013 2012 $1.426.10 506.50 2011 $1,49770 S1381.40 545.10 492.60 LOral 2013 Revlon 2013 Component Accounts Receivable Turnover Ratio Days Sales Outstanding Inventory Turnover Ratio Days Inventory on Hand Accounts Payable Turnover Ratio Days Accounts Payable Outstanding Operating Cycle Cash Operating Cycle 51.34 3.15 115.87 1.98 184.34 16721 17.13