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please answer A & B (Cash conversion cycle) Historical data for the firm's sales, accounts receivable, Inventories, and accounts payable for the Crimson Mig Company
please answer A & B
(Cash conversion cycle) Historical data for the firm's sales, accounts receivable, Inventories, and accounts payable for the Crimson Mig Company follow I 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. 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. (Round to two decimal places.) 2015 2016 Days of sales outstanding (DSO) 2014 2017 2018 = Urmson'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. at 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 rece ory? e Crims lay year - X Data table Crimsd at the fire (Click on the following icon in order to copy its contents into a spreadsheet.) 5-day year. les outst Sales Net Receivables-Total Acounts payable Inventories-Total 2014 4,354 608 423 333 2015 5,233 796 673 450 2016 7,923 1,079 691 641 2017 11,612 1,350 1,531 364 2018 18,438 2,271 2,424 364 Print Done Step by Step Solution
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