Question
Gallardo Company had the following information for the past three years: 2019 2018 2017 Days Inventory Outstanding 31 32 33 Days Sales Outstanding 6 8
Gallardo Company had the following information for the past three years:
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| 2019 |
| 2018 |
| 2017 |
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| Days Inventory Outstanding |
| 31 |
| 32 |
| 33 |
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| Days Sales Outstanding |
| 6 |
| 8 |
| 9 |
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| Days Payables Outstanding |
| 21 |
| 16 |
| 15 |
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Gallardos Cash Conversion Cycle
a) Improved from year 2017 to year 2018 but declined from year 2018 to year 2019.
b) Declined each year from 2017 through 2019.
c) Declined from year 2017 to year 2018 but improved from 2018 to year 2019.
d) Improved each year from 2017 through 2019.
e) There is not enough information to assess the Cash Conversion Cycle.
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
12th Canadian edition
978-0133098235
