Question
SP 9 Serial Problem Business Solutions (Algo) LO A4 Santana Reys two departments, Computer Consulting Services and Computer Workstation Furniture Manufacturing, have each been profitable
SP 9 Serial Problem Business Solutions (Algo) LO A4
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 | 33 | days | 35 | days |
| Days sales in inventory | 39 | days | 38 | days |
| Days payable outstanding | 45 | days | 42 | days |
Required: 1&2. Compute cash conversion cycle for the first quarter and second quarter. 3. Did cash conversion cycle improve or worsen from the first to the second quarter?
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Audit Marketing
Authors: Bruno Camus
1st Edition
2708108735, 978-2708108738
