What is the company''s cash conversion cycle?

Assignment Help Accounting Basics
Reference no: EM13871131

1. Go to https://finance.yahoo.com and get a quote for one company of your choice. On the left column, scroll down and select "Income Statement." Write down the annual sales, cost of goods sold, and depreciation expense for the most recent year.

2. Select the firm's Balance Sheet. Write down the balances shown for the firm's inventories, accounts receivable, and accounts payable.

3. Using the information from parts a and b, calculate its inventory turnover, accounts receivable turnover, and accounts payable turnover. You should show your work!

4. Calculate production cycle (also called Days of Sales in Inventory), collection cycle (also called Number of Days of Credit or Days of Sales Outstanding), and accounts payable cycle (also called Days of Payable Outstanding). You should show your work!

5. What is the company's cash conversion cycle? You should show your work! Please note that there is a typo in the textbook. The correct formual is CCC = DSI + DSO - DPO

6. Discuss the results that you receive in one paragraph. Should the company decrease cash conversion cycle? Please explain your answer.

7.In your responses to other students compare the cash conversion cycles of your company with the cash conversion cycle in another student's posting. What factors are responsible for these differences? Are these differences firm specific or are they consequences of the nature of the businesses in which these firms operate? Please explain your answers.

Reference no: EM13871131

Questions Cloud

How would you describe this company''s competitive strategy? : How would you describe this company's competitive strategy?
Weights on the piston creating pressure down on the gas : Assume you have gas in a cylinder equipped with a piston. There are weights on the piston creating pressure down on the gas.
Why is there less emphasis on the scale of investment effort : Why is there less emphasis on the scale of the investment effort in export-oriented industrialisation than in import-substituting industrialisation strategies?
Did the motor pool fund illustrated : Did the Motor Pool Fund illustrated in this chapter operate at a break even level during 2013? Explain.
What is the company''s cash conversion cycle? : What is the company's cash conversion cycle?
Discussing the options cover the implications resulting : In discussing the options cover the implications resulting from a decision as to whether the Printing Fund will be financed with a loan or an outright grant.
Is import substitution necessary phase in industrialisation : Is import substitution a necessary phase in industrialisation before a country can engage in exports? To what extent have industrialisation strategies in developing countries been suc- cessful in the post-war period?
Sensor network using xmpp based communication : Write a research paper on Security Mechanism for Sensor Network Using XMPP Based Communication
These statements as the basis for your presentation : Identify similarities and differences between these statements as the basis for your presentation.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Suppose the firm moves from a high-wage to a low-wage

a firm can use three different production technologies with capital and labor requirements at each level of out as

  Establishing the standard hours allowed for output of unit

To measure controllable production inefficiencies, which of the following is the best basis for a company to use in establishing the standard hours allowed for the output of one unit of product?

  Carla transfers land with a fmv of 100000 basis of 20000

carla transfers land with a fmv of 100000 basis of 20000 to a corporation in exchange for 50 of the corporations stock.

  Magic corporation an amusement park is considering a

magic corporation an amusement park is considering a capital investment in a new exhibit. the exhibit would cost 161102

  International differences in accounting

Compare the accounting systems in 2 countries with differing legal systems. Explain why each country's system is the way it is.

  Bienvenu enterprises reported cost of goods sold for 2010

bienvenu enterprises reported cost of goods sold for 2010 of 1400000 and retained earnings of 5200000 at december 31

  Rodman corporations fiscal year ends on november 30 the

rodman corporations fiscal year ends on november 30. the following accounts are found in its job order cost accounting

  Fair value information for the balance sheet

On January 1, 20x3 Pure Products Corporation issued 12,000 shares of its $10 par value stock to acquire the net assets of Light Steel Company. Underlying book value and fair value information for the balance sheet items of Light Steel at the time ..

  Consider a supplier of agricultural equipment who is

consider a supplier of agricultural equipment who is deciding how much of two products should be produced by his firm.

  Compute the total amount of each installment payment 2

leetch ltd. borrows 400000 cash from a bank by signing a five-year installment note bearing 8 interest. the note

  Caldwell company produces three varieties of iron ore xy

caldwell company produces three varieties of iron ore xy amp z from joint processing of raw mineral iron. the amount of

  During the current month the factory payroll of 180000 was

canberra company uses a job order cost accounting system. during the current month the factory payroll of 180000 was

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd