Santana Reys two departments, Computer Consulting Services and Computer Workstation Furniture Manufacturing, have each been profitable for Business Solutions. Santana has heard of the cash conversion cycle and wants to use it as another performance measure for the workstation manufacturing department. Data below are for the most recent two quarters. 1st Quarter 2nd Quarter Days sales in accounts receivable 30 days 32 days Days sales in inventory 36 days 35 days Days payable outstanding 42 days 39 days Required 1&2. Compute the cash conversion cycle for the first quarter and second quarter. 3. Did the cash conversion cycle increase or decrease from the first to the second quarter?

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• Req 1 and 2
• Req 3

Compute the cash conversion cycle for the first quarter and second quarter.

	1st Quarter	2nd Quarter
Cash conversion cycle