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Historical data for the sales, accounts receivable, inventories, and accounts

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

Question:

2014 2015 2016 2017 2018 Sales Net Receivables Total 4,310 5,213 7,944 11,639 18,491 617 807 1,089 1,355 2,229 Accounts Payable 425 671 699 1,560 2,465 Inventories-Total 330 440 644 377 350

a. Calculate Crimson’s days of sales outstanding and days of sales in inventory for each of the 5 years. What has Crimson accomplished in its attempts to better manage its investments in accounts 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.

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2014 2015 2016 2017 2018 Sales Net Receivables Total 4,310 5,213 7,944 11,639 18,491 617 807 1,089 1,355 2,229 Accounts Payable 425 671 699 1,560 2,465 Inventories-Total 330 440 644 377 350

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DATA 2014 2015 2016 2017 2018 Sales x net 4310 5213 7944 11639 18491 Cost of goods sold 3017 3649 55...View the full answer

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Foundations Of Finance

ISBN: 9780135160619

10th Edition

Authors: Arthur J. Keown, John H. Martin, J. William Petty

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Question Posted: Sep 10, 2020 03:04 AM

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

Question:

2014 2015 2016 2017 2018 Sales Net Receivables Total 4,310 5,213 7,944 11,639 18,491 617 807 1,089 1,355 2,229 Accounts Payable 425 671 699 1,560 2,465 Inventories-Total 330 440 644 377 350

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DATA 2014 2015 2016 2017 2018 Sales x net 4310 5213 7944 11639 18491 Cost of goods sold 3017 3649 55...View the full answer

Foundations Of Finance

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