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I only need DAYS OF INVENTORY ANSWER. How to get to that answer see the correct answere below. (Cash conversion cycle) Historical data for the
I only need DAYS OF INVENTORY ANSWER. How to get to that answer see the correct answere below.
(Cash conversion cycle) Historical data for the firm's sales, accounts receivable, inventories, and accounts payable for the Crimson Mfg. Company follow: a. Calculate Crimson's days of sales outstanding, days of payables outstanding, and days of sales in inventory for each of the 5 years. (Assume a 365-day year. Hint. Assume that the firm's cost of goods sold equals 70% of sales.) What has Crimson accomplished in its atempts to better manage its investments in account receivable and inventory? b. Calculate Crimson's cash conversion cycle for each of the 5 years. Evaluate the firm's overall management of its working capital. Assume a 365-day year. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) \begin{tabular}{llllll} & 2014 & 2015 & 2016 & 2017 & 2018 \\ \hline Days of sales in inventory (DSI) & 39.26 & 44.18 & 43.01 & 16.33 & 9.91 \\ \hline \end{tabular}
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