Reference no: EM131257327
DISCUSSION
Please note that if you edit your initial response (Original Post), you will not get credit for the Original Post. The discussions are set up as "Must post first".
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 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.
|
Discuss the role of a professional engineer
: Discuss the role of a professional engineer within a business environment, showing an appreciation between the technical aspects of the role and the social, cultural, environmental, economic and political contexts.
|
|
Describe potential red flags and warning signs of drug abuse
: Consider how you might evaluate a patient that presents with back pain. Think about potential red flags and warning signs of drug abuse.
|
|
Analyze the overall manner in which you would utilize doe
: Next, analyze the overall manner in which you would utilize DOE to manage and improve the work process of the project in question. Provide a rationale for your response.
|
|
Create a plan to hire an employee for a position
: Create a plan to hire an employee for a position within your organization to support a recent change. - Any recommendations about what would result in removal of the employee if he/she is not a good fit for the organization.
|
|
What is the companys cash conversion cycle
: 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.
|
|
Different price-consumption curve
: Mary Gail has a different price-consumption curve associated with each possible income level. If two of these curves intersect, are Mary Gail's preferences rational?
|
|
What is the efficient solution to the problem
: You could move to another house far enough away from the factory,but the rent for that house is $200 more than what you pay now. What is the efficient solution to the problem?
|
|
Examine the major technology risk factors
: Second, select one (1) of the primary risk factors for the next five to ten (5-10) years that were mentioned at the end of the article. Then, recommend one (1) product or service from the Export-Import Bank to address the selected risk and provide..
|
|
Explain how is international trade regulated
: How is international trade regulated? Log on to www.wto.org and click the "Trade Topics" tab to learn about the scope of trade agreements and trade controversies. What is involved in "trade agreements"?
|