Homework Help is Here – Start Your Trial Now!
Business
Finance
2011 2012 2013 2014 Days' Sales in Inventory Days' Sales in Receivables 81 69 62 46 20 46 119 144 Accounts payable period 84 90 95 91 Cash cycle in days 17 25 85 98

2011 2012 2013 2014 Days' Sales in Inventory Days' Sales in Receivables 81 69 62 46 20 46 119 144 Accounts payable period 84 90 95 91 Cash cycle in days 17 25 85 98

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 5PEA
See similar textbooks
icon
Related questions
Question
 

Based on the information for the past four years (attached in the screenshot), could you explain why the company’s cash cycle seems to be increasing, without going into any calculations? Also, what are two remedial actions the company could take to improve this situation?

2011 2012 2013 2014 Days' Sales in Inventory Days' Sales in Receivables 81 69 62 46 20 46 119 144 Accounts payable period 84 90 95 91 Cash cycle in days 17 25 85 98
Transcribed Image Text:2011 2012 2013 2014 Days' Sales in Inventory Days' Sales in Receivables 81 69 62 46 20 46 119 144 Accounts payable period 84 90 95 91 Cash cycle in days 17 25 85 98
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS