Using the following information, complete the required ones. Company A Company B Sales $413,547 15,741 Cost of
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Using the following information, complete the required ones.
Company A | Company B | |
Sales | $413,547 | 15,741 |
Cost of sales (COGS) | 18,821 | 8,313 |
Average Accounts Receivable (Average A/R) | 1,582 | 1,357 |
Average Inventory | 1,574 | 1,163 |
Average accounts payable (average A/P) | 2,433 | 2,348 |
1. Indicate which company best handles accounts receivable. Explain and show your computations
2. Indicate which company manages inventory best. Explain and show your computations
3. Indicate which company best handles accounts payable. Explain and show your computations
4. Determine the Cash Conversion Cycle for both companies (show all your calculations
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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