Problem Solving - Cash Conversion Cycle Answer the following questions by using the following data taken from the financial statement of 2 companies: Company ABC Company DEF Annual Sales (on Credit) $1,324,600 Annual Sales (on Credit) $2,748,308 Cost of Goods Sold $936,720 Cost of Goods Sold $1,709,406 Average Inventory $225,025 Average Inventory $356,394 Average Accounts Receivable $346,007 Average Accounts Receivable $300,000 Average Accounts Payable $175,456 Average Accounts Payable $150,000 How much is the approximate Days Payable Outstanding of Company DEF? To 22 40 45 68 How much is the approximate Days Inventory Outstanding for Company to 95 76 How much is the approximate Days Sales Outstanding for Company DEF?** 40 76 How much is the approximate Days inventory Outstanding for Company DEF? 78 95 How much is the approximate Days Payable Outstanding of Company ABC? 95 32 40 68 How much is the approximate Days Sales Outstanding for Company ABC? o 87 95 40 o 76 How much is the approximate Cash Conversion Cycle of Company ABC? 116 115 88 How much is the approximate Cash Conversion Cycle of Company Def? 115 88 116 o Which company shows a better standing when comparing its DPO? Company ABC Company DEF Company CHI None of the above Which company shows a better standing when comparing its CCC? Company ABC Company Des CCTIpa, GHI None of the above