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Given the following information for Q1 and Q2 and Import Co, LLC, determine of it's quarterly cash conversion cycle is improving? Do you see any
Given the following information for Q1 and Q2 and Import Co, LLC, determine of it's quarterly cash conversion cycle is improving? Do you see any concerns, please explain why or why not? Two way to do the quarterly CCC, use 90 day cycle.
Q1 | Q2 | |||
Sales | $3,825,000 | Sales | $3,850,000 | |
COGS | $2,150,000 | COGS | $2,300,000 | |
Avg Inv | $745,000 | Avg Inv | $690,000 | |
Avg AR | $920,000 | AR | $950,000 | |
AP | $875,000 | AP | $925,000 |
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