Reference no: EM131434283
Assignment: Business Finance
Cash conversion cycle
The text identifies three principal components that jointly comprise the cash conversion cycle. The cash conversion cycle is defined as the average length of time a dollar is tied up in current assets, and it is determined by the interaction between the production cycle (also called Days of Sales in Inventory), receivables collection period (also called Number of Days of Credit, Collection cycle, or Days of Sales Outstanding), and the accounts payable cycle (also called Days of Payable Outstanding). Ideally, a company wants to minimize the cash conversion cycle as much as possible. In some circumstances, a firm has a comparative advantage in working capital management because of the nature of its business. We will look at the cash conversion cycles of companies and their implications.
In your initial response to the topic you have to answer all 6 questions.
You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.
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. For some companies depreciation expense can be found in Cash Flow statement.
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 isCCC = DSI + DSO - DPO
6. Discuss the results that you receive in one paragraph. Should the company decrease cash conversion cycle? Please explain your answer.
|
Consequences of moral courage
: 1. What leads some people to show moral courage, despite the potential for negative outcomes? 2. Describe some common outcomes or consequences of moral courage, both good and bad
|
|
Write about a dream that really made an impact on you
: Write about a dream that really made an impact on you. It can be a recurring dream, a scary dream, a happy dream, or an especially vivid dream. What do these websites say about the interpretation of your dream? Do you feel these interpretations..
|
|
Analysis of the biehl-missal article
: Biehl-Missal uses theater theory to explore the oral presentations of organizational leaders in terms of their attractiveness and persuasiveness.
|
|
How much will sarah have to invest today
: Sarah Wiggum would like to make a single investment and have $1.6 million at the time of her retirement in 35 years. She has found a retirement fund that will earn 3% annually. How much will Sarah have to invest today?
|
|
Write down the annual sales and cost of goods sold
: Write down the annual sales, cost of goods sold, and depreciation expense for the most recent year. For some companies depreciation expense can be found in Cash Flow statement.
|
|
Ms project familiarization
: Write a two to three (2-3) page paper in which you summarize your thoughts on Microsoft Project: 1. Give your opinion on how easy or difficult MS Project seems to be from a user experience standpoint.
|
|
Write down the annual sales and cost of goods sold
: Write down the annual sales, cost of goods sold, and depreciation expense for the most recent year. For some companies depreciation expense can be found in Cash Flow statement.
|
|
Theory of the absurd and existentialism
: How do you relate this book to business ethics, if at all? Please explain. Pick a relationship that Meursault has in the book - how does this relate to the theory of the absurd and/or existentialism?
|
|
Theory of the absurd and existentialism
: How do you relate this book to business ethics, if at all? Please explain. Pick a relationship that Meursault has in the book - how does this relate to the theory of the absurd and/or existentialism?
|