Exercise 22 18 Cash conversion cycle LO A4 Current Year Prior Year Accounts payable, end of year $ 5,123 $ 9,068 Accounts receivable, net, end of year 20,005 16,082 Inventory, end of year 7,424 6,615 Net sales 210,000 183,000 Cost of goods sold 123,000 127,000 (1) Use the information above to compute the number of days in the cash conversion cycle for each year (2) Did the company manage cash more effectively in the current year 1 Current Year Prior year Cash conversion cycle days days 2 Yes or No

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Question: Exercise 22-18 Cash conversion cycle LO A4 Current Year Prior Year Accounts payable, end of year $ 5,123 $ 9,068 Accounts receivable, net, end of

Exercise 22-18 Cash conversion cycle LO A4

	Current Year		Prior Year
Accounts payable, end of year	$	5,123	$	9,068
Accounts receivable, net, end of year		20,005		16,082
Inventory, end of year		7,424		6,615
Net sales		210,000		183,000
Cost of goods sold		123,000		127,000

(1) Use the information above to compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year?

	Current Year		Prior year
Cash conversion cycle	?	days	?	days

2. Yes or No?

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