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MGMT211_Assignment_2018F_Questions_FINAL - Excel
abraham chacko
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Calculate the cash conversion cycle for Cheap Goods Inc., given the following information:
Sales $11,400,000 COGS $9,100,000 Inventory $1,600,000 AR $657,600 AP $657,300 Days per year 365
Cash conversion cycle (CCC)
=
Inventory conversion period
Receivables collection period
Payables deferral period
Inventory/Sales per day
AR/Sales per day
AP/COGS per day
- T
Morstrom's recent financial statements are shown below.
INCOME STATEMENT (in millions of dollars)
BALANCE SHEET (in millions of dollars)
2015
2016
2015
2016
Sales $2,850.0 $3,100.0 COGS except depreciation $2,000.0 $2,100.0 Depreciation $90.0 $100.0 Other operating expenses $497.0 $516.2 Total operating costs $2,587.0 $2,716.2 EBIT $263.0 $383.8 Less Interest $60.0 $88.0 Earnings before taxes (EBT) $203.0 $295.8 Instructions & Marks Summary Q1 Q2
Assets Cash ST Investments Accounts receivable Inventories Total current assets Net plant and equipment [Total assets Q4 Q5 Q6 Q7
$515.0 $510.0 $65.0 $0.0 $315.0 $375.0 $415.0 $575.0 $810.0 $960.0 $870.0 $1,000.0 $1,680.0 $1,960.0] Q8 Q9 Q10
Q3
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+85% 12:21 PM 1 12/4/2018
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