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 outstanding41.936Days inventory outstanding57.458.4Days payable outstanding27.227.2
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 1Answer 2
Answer 3Days sales outstandingDays inventory outstandingDays payable outstanding is the main cause for the change between the years.

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