Sims Electric Corp. has been striving for the last 5 years to improve its management of working capital. Historical data for the firm’s sales, accounts receivable, inventories, and accounts payable follow:
a. Calculate Sims’ days of sales outstanding and days of sales in inventory for each of the 5 years. What has Sims accomplished in its attempts to better manage its investments in accounts receivable and inventory?
b. Calculate Sims’ cash conversion cycle for each of the 5 years. Evaluate Sims’ overall management of its working capital.

  • CreatedSeptember 11, 2015
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