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Problem 9-1: Show the formulas Cash Conversion Cycle Given the following information: (Amounts in 000's SAR) 20X1 20X2 20X3 20X4 Sales - net 4,250 5,314

Problem 9-1:

Show the formulas

Cash Conversion Cycle

Given the following information: (Amounts in 000's SAR)

20X1

20X2

20X3

20X4

Sales - net

4,250

5,314

7,877

10,942

Cost of goods sold

2,975

3,720

5,514

7,659

Accounts receivable

618

799

1,091

1,348

Inventories

332

445

639

382

Accounts payable

425

670

704

1,555

Calculate for each year:

(1) Days sales outstanding

(2) Days of sales in inventory

(3) Days payable outstanding

(4) Cash conversion cycle

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