Calculating cash conversion cycle

Reference no: EM13826391

Problem

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.

	Fiscal Year 2005	Fiscal Year 2004	Fiscal Year 2003
Revenue	$5,103,004	$4,873,595	$4,372,177
COGS	$3,533,009	$3,386,619	$3,060,462
Inventory	$1,274,578	$1,289,807	$1,395,872
A/R	$91,501	$50,966	$66.948
A/P	$745,073	$639,939	$710,907

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.

Additional Information:

This question is basically belongs to the Finance as well as it describes about calculating cash conversion cycle and each of the components used for calculating cash conversion cycle.

Reference no: EM13826391

Questions Cloud

Use of decision tree to hire workforce : You are considering hiring another mechanic for your business located in Providence. The mechanic would cost an additional $50,000 per year in salary and benefits.

Analyze a current om technique : Analyze a current OM technique-Find one scholarly journal article reporting on one or more of the following techniques: business/predictive analytics, dashboards, decision support systems, supply chain management

Discusses the role of microfinance in poverty alleviation : The question is belongs to Economics and the question discusses the role of microfinance in poverty alleviation in Cambodia. Cambodia is a developing South East Asian country.

Brief discussion of the general purpose of an eia : Brief discussion of the general purpose of an EIA and demonstration of how criteria were used for assessing the need for an EIA.

Calculating cash conversion cycle : 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.

Writing a report on the four functions of management : The problem related to Business Management and it's about writing a report on the four functions of management which include planning, organizing, leading and controlling

Briefly what is statutes of general application : Explain briefly what is statutes of general application

How much will you spend in fuel on your trip : Considering that in Europe the average fuel cost is 1.063 euros/liter, how much (in US dollars) will you spend in fuel on your trip?

Explain how the company you have chosen uses dynamic pricing : The problem is belongs to Economics and the problem is explore about pricing, particularly belongs to dynamic pricing. In this question, an example of a company using dynamic pricing has been discussed.

User Account

All Pages