Question
Cash flow management 6.1 Interpret the working capital cycle (days) depicted below, indicating for each component, as well as for the net working capital cycle,
Cash flow management 6.1 Interpret the working capital cycle (days) depicted below, indicating for each component, as well as for the net working capital cycle, whether there was an increase or decrease in the number of days and by how many (complete below in [A]), and whether it is good or bad for cash flow [B].
| WCC IN DAYS | 2020 | 2019 | Increase (+) Decrease (-) A | Good or Bad for cash flow B |
| Inventories | 1.15 | 1.61 |
|
|
| Receivables | 17.94 | 23.31 |
|
|
| Payables | 29.68 | 31.19 |
|
|
| Net WCC (=Inv + Rec-Pay) | -10.58 | -6.27 |
|
|
Cash flow management: Interpret the working capital cycle (days) depicted below, indicating for each component, as well as for the net working capital cycle, whether there was an increase or decrease in the number of days and by how many (complete below in [A]), and whether it is good or bad for cash flow [B].
| WCC IN DAYS | 2020 | 2019 | Increase (+) Decrease (-) A | Good or Bad for cash flow B |
| Inventories | 1.15 | 1.61 |
|
|
| Receivables | 17.94 | 23.31 |
|
|
| Payables | 29.68 | 31.19 |
|
|
| Net WCC (=Inv + Rec-Pay) | -10.58 | -6.27 |
|
|
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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
