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(Cash conversion cycle) Historical data for the firm's sales, accounts receivable, inventories, and accounts payable for the Crimson Mfg. Company follow: a. Calculate Crimson's days of sales outstanding, days of payables outstanding, and days of sales in inventory for each of the 5 years. (Assume a 365-day year. Hint. Assume that the firm's cost of goods sold equals 70% of sales.) What has Crimson accomplished in its atempts to better manage its investments in account receivable and inventory? b. Calculate Crimson's cash conversion cycle for each of the 5 years. Evaluate the firm's overall management of its working capital. Assume a 365-day year. a. Calculate Crimson's days of sales outstanding, days of payables outstanding, and days of sales in inventory for each of the 5 years. Assume a 365-day year. Hint: Assume that the firm's cost of goods sold equals 70% of sales. (Round to two decimal places.) Days of sales outstanding (DSO) 2014 50.43 2015 55.93 2016 48.53 2017 43.07 2018 44.41 (Round to two decimal places.) 2014 2015 2016 2017 2018 Days of sales in inventory (DSI) 4 (Click on the following icone in order to copy its contents into a spreadsheet.) Sales-Net ReceivablesTotal Acounts payable InventoriesTotal 2014 4,343 600 440 327 2015 5,240 803 672 455 2016 7,987 1,062 681 633 2017 11,679 1,378 1,579 367 2018 18,404 2,239 2,454 355

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