Calculation Of Cash Conversion Cycle And Its Components

$5.00$2.002018 reads

Question

Using the following selected financials from Barnes & Noble’s 10-K, calculate the cash conversation cycle for fiscal years 2004 and 2005. Show all work used to arrive at the answer.

Days

Fiscal Year

2005

Fiscal Year

2004

DSO

 

 

DII

 

 

DPO

 

 

Cash Conversion Cycle

 

 

 

  • Looking at the trend between 2004 and 2005, has there been an improvement or worsening of the cash conversion cycle?
  • Discuss how each component you calculated is contributing to the increase or decrease in the cash conversion cycle from 2004 to 2005.

 

Summary

The question belongs to Finance and it discusses about calculating cash conversion cycle and each of the components used for calculating cash conversion cycle.

Total Word Count 166

Add to Cart