Exercise 22-20 (Algo) Cash conversion cycle LO A4 A manufacturer reports the data below. Accounts payable Accounts receivable Inventory Net sales Cost of goods sold Current Year $ 8,763 Prior Year $ 12,708 29,245 18,574 11,064 10,535 166,000 113,000 81,000 117,000 (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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 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
Exercise 22-20 (Algo) Cash conversion cycle LO A4 A manufacturer reports the data below. Accounts payable Accounts receivable Inventory Net sales Cost of goods sold Current Year $ 8,763 Prior Year $ 12,708 29,245 18,574 11,064 10,535 166,000 113,000 81,000 117,000 (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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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