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Would you be able to check my numbers? I was really unsure on the Cash effect. begin{tabular}{l|c|c|c} hline Revenue & 65,017 & 68,619 & 71,309
Would you be able to check my numbers? I was really unsure on the Cash effect.
\begin{tabular}{l|c|c|c} \hline Revenue & 65,017 & 68,619 & 71,309 \\ \hline Cost of goods sold & 43,343 & 46,185 & 48,394 \\ \hline Gross profit & 21,674 & 22,434 & 22,915 \\ \hline Accounts receivable & & & \\ \hline Inventory & 10,458 & 11,393 & 12,561 \\ \hline Accounts payable & 6,651 & 6,590 & 8,279 \\ \hline \end{tabular} 1. Gross profit margin 2. Days inventory outstanding (DIO) Average inventory DIO 10,92686.311,97790.3 3. Days payables outstanding (DPO) Average accounts payable DPO 6,62152.37,43556.1 4. Cash effect (caused by the change in Cash conversion cycle) Change in cash conversion cycle (CCC), 2019 Average daily COGS = COGS /365 (0.20) 132.59 Cash effect (26.5)Step by Step Solution
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