A manufacturer reports the data below. Accounts payable Accounts receivable Iaventory Set sales Cost of gooda sold Current Year Prior Tear $9,328 16,260 6,895 175,000 126,000 $5,383 20,665 7,684 206,000 117,000 (1 Compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year?

A manufacturer reports the data below. Accounts payable Accounts receivable Iaventory Set sales Cost of gooda sold Current Year Prior Tear $9,328 16,260 6,895 175,000 126,000 $5,383 20,665 7,684 206,000 117,000 (1 Compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 12P

See similar textbooks

Similar questions

Financial data for Otto Company follow: a. Compute the ratio of cash to monthly cash expenses. b. Interpret the results computed in (a).
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
Which item is added to net income when computing cash flows from operating activities? a. Gain on the disposal of property, plant, and equipment b. Increase in wages payable c. Increase in inventory d. Increase in prepaid rent Use the following information for Multiple-Choice Questions 11-9 and 11-10: Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000.