Question

	2014		2015		2016		2017		2018
Sales—Net	4349		5,234		7,937		11,651		18,457
Receivables-Total	621		809		1,063		1,332		2,204
Acounts payable	436		683		705		1,600		2,465
Inventories--Total	327		457		635		379		352

Historical data for the​ firm's sales, accounts​ receivable, inventories, and accounts payable for the Crimson Mfg. Company​ follow:

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.a. Calculate​ Crimson's days of sales​ outstanding, days of payables​ outstanding, and days of sales in inventory for each of the 5 years.

​(Assume

a​ 365-day year.

Hint​:

Assume that the​ firm's cost of goods sold equals​ 70% of​ sales.) What has Crimson accomplished in its attempts to better manage its investments in account receivable and​ inventory?

b. Calculate​ Crimson's cash conversion cycle for each of the 5 years. Evaluate the​ firm's overall management of its working capital. Assume a​ 365-day year.

a. Calculate​ Crimson's days of sales​ outstanding, days of payables​ outstanding, and days of sales in inventory for each of the 5 years. Assume a​ 365-day year. ​Hint: Assume that the​ firm's cost of goods sold equals​ 70% of sales.

DSO:

A.2014

B.2015

C.2016

D.2017

E.2018

Answer 1