Exercise 22-18 Cash conversion cycle LO A4

	Current Year			Prior Year
Accounts payable, end of year	$	5,123		$	9,068
Accounts receivable, net, end of year		20,005			16,082
Inventory, end of year		7,424			6,615
Net sales		210,000			183,000
Cost of goods sold		123,000			127,000

(1) Use the information above to 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?

1.

	Current Year		Prior year
Cash conversion cycle	?	days	?	days

2. Yes or No?