(1) Use the information below to compute the number of days in the cash conversion cycle for each company. (2) Which company is more effective at managing cash? Spartan Co. Chen Co. Days’ sales in accounts receivable . 32 45 Days’ sales in inventory . 20 24 Days’ payable outstanding . 27 32

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Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.16E
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(1) Use the information below to compute the number of days in the cash conversion cycle for each
company.
(2) Which company is more effective at managing cash? Spartan Co. Chen Co.
Days’ sales in accounts receivable . 32 45
Days’ sales in inventory . 20 24
Days’ payable outstanding . 27 32

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