Assignment:
Purpose
The purpose of assignment is to help students gain a better understanding of calculations of cash flow and strategies to increase it.
Steps
Select a multinational company from the following industries:
Retail
Pharmaceutical
Computer Hardware
Manufacturing
Automotive
Review the selected company's most recent financial statements.
Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft® Excel®:
Average inventory
Inventory turnover rate
Average account receivable
Account receivable turnover
Average collection cycle
Average Payment Cycle
Explain 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.
Calculations need to be included in the analysis/explanation paper.
Format your paper consistent with APA guidelines.
Include the APA Plagiarism Checker Results. (10% Penalty if not present)
Include excel document where you did your calculations.
Include a separate Word document for the analysis incorporating the calculations from the excel document.