Use the Allstott 2017 income statement that follows and the balance sheet from exercise S11-6 to compute

Question:

Use the Allstott 2017 income statement that follows and the from exercise S11-6 to compute the following:

a. Allstott's rate of inventory turnover and days inventory outstanding for 2017
b. Days' sales in average receivables (days sales outstanding) during 2017 (round dollar amounts to one decimal place)
c. Accounts payable turnover and days' payables outstanding
d. Length of cash conversion cycle in days.
Do these measures look strong or weak? Give the reason for your answer.

Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...