Compute the number of days in the cash conversion cycle for each year. Note: Use 365 days in a year. Round calculations to the nearest whole day.)A manufacturer reports the data below. Current Year Prior Year Accounts payable $ 6,943 $ 10,888 Accounts receivable 24,625 17,328 Inventory 9,244 8, 575 Net sales 184,000 137,000 Cost of goods sold 94,000 120,000 (1) Compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? Compute the number of days in the cash conversion cycle for each year. Note: Use 365 days in a year. Round calculations to the nearest whole day.) Cash conversion cycle Current year days Prior year days
Compute the number of days in the cash conversion cycle for each year. Note: Use 365 days in a year. Round calculations to the nearest whole day.)A manufacturer reports the data below. Current Year Prior Year Accounts payable $ 6,943 $ 10,888 Accounts receivable 24,625 17,328 Inventory 9,244 8, 575 Net sales 184,000 137,000 Cost of goods sold 94,000 120,000 (1) Compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? Compute the number of days in the cash conversion cycle for each year. Note: Use 365 days in a year. Round calculations to the nearest whole day.) Cash conversion cycle Current year days Prior year days
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 12P
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Transcribed Image Text:Compute the number of days in the cash conversion cycle for each year. Note: Use 365 days in a year. Round
calculations to the nearest whole day.)A manufacturer reports the data below. Current Year Prior Year Accounts payable
$ 6,943 $ 10,888 Accounts receivable 24,625 17,328 Inventory 9,244 8, 575 Net sales 184,000 137,000 Cost of goods
sold 94,000 120,000 (1) Compute the number of days in the cash conversion cycle for each year. (2) Did the company
manage cash more effectively in the current year?
Compute the number of days in the cash conversion cycle for each year.
Note: Use 365 days in a year. Round calculations to the nearest whole day.)
Cash conversion cycle
Current year
days
Prior year
days
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