Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Apple 2019 Inventory conversion period=9.26 days 2019 Accounts receivable conversion period= 32.16 days 2019 Account payable conversion period= 104.31 days 2019 cash conversion cycle=9.26 +
Apple 2019 Inventory conversion period=9.26 days 2019 Accounts receivable conversion period= 32.16 days 2019 Account payable conversion period= 104.31 days 2019 cash conversion cycle=9.26 + 32.16 - 104.31 = -62.89 days 2020 Inventory conversion period=8.74 days 2020 Accounts receivable conversion period=21.43 days 2020 Account payable conversion period= 91.05 days 2020 cash conversion cycle=8.74 +21.43 - 91.05 = -60.88 days 2021 Inventory conversion period=11.28 days 2021 Accounts receivable conversion period=26.22 days 2021 Account payable conversion period=93.85 days 2021 cash conversion cycle= 11.28 +26.22 - 93.85 --56.36 days Question- A) Provide an analysis of the cash conversion trends that are present B) Based on the data of the cash conversion cycle for the past 3 years of the company, What conclusions can be drawn? Please list a few conclusions and explain them. When you write the conclusions, please explain what each conclusion means in depth
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started