Question
A manufacturer reports the data below. Current Year Prior Year Accounts payable $ 9,543 $ 13,488 Accounts receivable 31,225 19,108 Inventory 11,844 11,375 Net sales
A manufacturer reports the data below.
| Current Year | Prior Year | |
|---|---|---|
| Accounts payable | $ 9,543 | $ 13,488 |
| Accounts receivable | 31,225 | 19,108 |
| Inventory | 11,844 | 11,375 |
| Net sales | 159,000 | 106,000 |
| Cost of goods sold | 77,000 | 115,000 |
Compute the number of days in the cash conversion cycle for each year.
Did the company manage cash more effectively in the current year?
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ISE Fundamentals Of Cost Accounting
Authors: William N. Lanen, Shannon Anderson, Michael W. Maher
7th Edition
1265117705, 9781265117702
