In: Accounting
Current Year | Prior Year | |||||
Accounts payable, end of year | $ | 6,943 | $ | 10,888 | ||
Accounts receivable, net, end of year | 24,625 | 17,328 | ||||
Inventory, end of year | 9,244 | 8,575 | ||||
Net sales | 184,000 | 137,000 | ||||
Cost of goods sold | 94,000 | 120,000 | ||||
(1) Use the information above to 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?