Question: Computing Cash Conversion Cycle for Two Years Winnebago Industries has the following metrics for a recent fiscal year. Amounts in DaysCurrent YearPrior YearDays sales outstanding
Computing Cash Conversion Cycle for Two Years
Winnebago Industries has the following metrics for a recent fiscal year.
Amounts in DaysCurrent YearPrior YearDays sales outstandingDays inventory outstandingDays payable outstanding
Compute the cash conversion cycle for both years. What accounts for the change between the years?
Note: Do not round answers.
Current YearPrior YearCash conversion cycleAnswer Answer
Answer Days sales outstandingDays inventory outstandingDays payable outstanding is the main cause for the change between the years.
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