The cash conversion cycle of Retallik Corporation has changed from52days in year1,to56days in year2,to61days in year3.Which conclusion
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Question:
The cash conversion cycle of Retallik Corporation has changed from 52 days in year 1, to 56 days in year 2, to 61 days in year 3. Which conclusion is most likely?
The increase in the inventory occurred at a slower rate than the increase in the credit purchases.
The credit sales of the company decreased, and the amount of accounts receivables remained the same.
The cost of trade credit became lesser than the short-term finances available to the company.
Related Book For
Interpreting and Analyzing Financial Statements
ISBN: 978-0132746243
6th edition
Authors: Karen P. Schoenebeck, Mark P. Holtzman
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