Assignment: Cash Conversion
The purpose of this assignment is to help students gain a better understanding of calculations of cash flow and strategies to increase it.
Select a multinational company from the following industries:
• Retail
• Pharmaceutical
• Computer Hardware
• Manufacturing
• Automotive
Review the selected company's most recent financial statements.
Save the selected company's most recent financial statements as a PDF and submit/upload with your assignment in order to receive credit.
Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft® Excel®: You must show your work in order to receive credit.
• Average inventory
• Inventory turnover rate
• Average account receivable
• Account receivable turnover
• Average collection cycle
Explain in 500 words the importance of the cash conversion cycle, including:
• Discuss the purpose of the cash conversion cycle and its components.
• Analyze the results obtained in the cash conversion cycle equations.
• Propose strategies to increase the cash flows of the company under study.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.