Question: please respond to my answer. M6-19: Computing Cash Conversion Cycle for Two Years. Winnebago Industries has the following metrics for 2018 and 2017: Amount in

please respond to my answer.

M6-19: Computing Cash Conversion Cycle for Two Years. Winnebago Industries has the following metrics for 2018 and 2017:

Amount in days 2018 2017

Days sales outstanding 26.2 22.5

Days inventory outstanding 35.9 36.5

Days payable outstanding 17.0 17.0

Cash conversion cycle = Days inventory outstanding + days sales outstanding days payables outstanding

Cash conversion cycle for 2018 = 35.9 + 26.2 17.0 = 45.1 days

Cash conversion cycle for 2017 = 36.5 + 22.5 17.0 = 42 days

An increase of 0.4 days inventory outstanding and an increase of 3.7 days sales outstanding from 2017 to 2018 accounts for the change in the cash conversion cycle from 42 days in 2017 to 45.1 days in 2017.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

2016 2017 2018 Revenue 2,169,461 1,615,519 1,511,983 Account receivables, net 477,825 406,019 414,209 Allowance for doubtful debt Beginning balance 1,825 282 9,229 Increases 339 30,551 56 Write offs...

AutoZone and O'Reilly are two competitors in the retail automotive parts industry. AutoZone O'Reilly Average 2015 Inventory $3,280,868 $2,592,902 2015 Sales 10,187,340 7,966,674 2015 Cost of goods...

Computing Cash Conversion Cycle for Two Years Winnebago Industries has the following metrics for 2015 and 2014. Amounts in days Days sales outstanding 2015 2014 26.3 19.9 Days inventory outstanding...

Computing Cash Conversion Cycle for Two Years Winnebago Industries has the following metrics for 2015 and 2014. Amounts in days 2015 2014 Days sales outstanding 26.6 20.2 Days inventory outstanding...

QUESTION 2 Marked out of 2.00 Not complete Flag question Computing Cash Conversion Cycle for Two Years Winnebago Industries has the following metrics for 2015 and 2014 Amounts in days 2015 2014 Days...

Computing Cash Conversion Cycle for Two Years Winnebago Industries has the following metrics for 2015 and 2014 Amounts in days 2015 2014 Days sales outstanding 25.9 19.5 Days inventory outstanding...

Computing Cash Conversion Cycle for Two Years Winnebago Industries has the following metrics for 2015 and 2014. Amounts in days 2015 2014 Days sales outstanding 26.3 19.9 Days inventory outstanding...

Computing Cash Conversion Cycle for Two Years Winnebago Industries has the following metrics for 2015 and 2014. Amounts in days 2015 2014 Days sales outstanding 25.7 19.3 Days inventory outstanding...

Computing Cash Conversion Cycle for Two Years Winnebago Industries has the following metrics for 2015 and 2014. Amounts in days 2015 2014 Days sales outstanding . . . . . . . . . . . . . . . . . . ....

Complete M6-19 and M6-21. Module 6 1 Asset Recognition and Operating Assets 6-36 10. Computing and Comparing PPE Turnover for Two Companies Tesas Instruments Inc. and Intel Corporation report the...

A game is played by drawing one card at random from a standard 52-card deck. If the card is a diamond, the player wins. If the card is not a diamond, the player loses $16. In order for this to be a...

In the following C denotes the set of complex numbers with i = V-1 and No = {0, 1, 2,3..}. If z C and k e No, then z(z-1)-(3-k+1) if k>0, () { if k = 0. is called a binomial coefficient to be read...

Individuals hold precautionary balances in order to Take advantage of future changes in bond prices. Make anticipated expenditures ( Saying Money to Buy Stock at a lower Rate 2 Months From Now when...

7 - 1 8 . A corporation in 2 0 1 7 expects a gross income of $ 5 0 0 , 0 0 0 , total operating expenses of $ 4 0 0 , 0 0 0 , and capital investments of $ 2 0 , 0 0 0 . In addition the corporation is...