Question: 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

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

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1 To determine which company best handles accounts receivable we can calculate the accounts receivable turnover ratio for both companies The formula for accounts receivable turnover is Accounts Receiv... View full answer

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