Compute Cash Conversion Cycle for Competing Firms Kellogg's Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to $ millions Total revenue Cost of sales and services K GIS $14,597.0 $16,790.0 9,871.0 10,312.9 Average accounts receivable Average inventory Average accounts payable 1,382.0 2,607.0 2,324.0 1,562.9 2,348.0 3,483.0 Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two deci a. Compute the following measures for both companies. 1. Days sales outstanding (DSO) Company K DSO 0 0 GIS 2. Days inventory outstanding (DIO) Company DIO K GIS

Compute Cash Conversion Cycle for Competing Firms Kellogg's Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to $ millions Total revenue Cost of sales and services K GIS $14,597.0 $16,790.0 9,871.0 10,312.9 Average accounts receivable Average inventory Average accounts payable 1,382.0 2,607.0 2,324.0 1,562.9 2,348.0 3,483.0 Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two deci a. Compute the following measures for both companies. 1. Days sales outstanding (DSO) Company K DSO 0 0 GIS 2. Days inventory outstanding (DIO) Company DIO K GIS

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Two competitors in the construction supply industry report the following selected financial data: Company A Company B Sales $ 46,570 $ 66,176 Net income 1,853 2,650 Operating cash flows 3,954 5,095 Total assets, beginning 33,355 40,527 Total assets, ending 31,675 42,114 1. Calculate the cash return on assets, cash flow to sales ratio, and asset turnover ratio for each company. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Cash return on assets: Company A:_______% Company B:_______% Cash flow to sales: Company A:_______% Company B:_______% Asset turnover: Company A:_______times Company B:_______times 2-a. Which company has the better cash flow to sales ratio?multiple choice 1 Company A Company B 2-b. Which company has the better asset turnover ratio?multiple choice 2 Company A Company B
P3-54. Compute Cash Conversion Cycle for Competing Firms Kellogg's Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions K GIS Total revenue $13,547.0 $15,740.4 Cost of sales and services. 8,821.0 1,382.0 1,273.5 10,312.9 Average accounts receivable Average inventory... Average accounts payable.. 1,557.2 1,562.9 2,348.0 2,433.0 a. Compute the following measures for both companies. K GIS 1. Days sales outstanding (DSO) 2. Days inventory outstanding (DIO) 3. Days payables outstanding (DPO) Cash conversion cycle (CCC) 4. GIS Which company better manages its accounts receivable? Which company uses inventory more efficiently? d. b. с. Which company better manages its accounts payable? || |||| - ||
Forecast the Statement of Cash FlowsFollowing are the income statements and balance sheets of Best Buy Co., Inc. Income Statement,Fiscal Years Ended ($ millions) 2012Estimated Feb. 26,2011 Revenue $52,534 $50,272 Cost of goods sold 39,295 37,611 Restructuring charges - cost of goods sold -- 24 Gross profit 13,239 12,637 Selling, general and administrative expenses 10,769 10,325 Restructuring charges -- 198 Goodwill and tradename impairment -- -- Operating income 2,470 2,114 Other income (expenses) Investment income and other 51 51 Interest expense (87) (87) Earnings before income tax expense and equity in income of affiliates 2,434 2,078 Income tax expense 837 714 Equity in income of affiliates 2 2 Net earnings including noncontrolling interests 1,599 1,366 Net earnings attributable to noncontrolling interests (120) (89) Net earnings attributable to Best Buy Co., Inc. $1,479 $1,277 Balance Sheet($ millions) 2012Estimated Feb. 26,2011…
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Your consulting firm was recently hired to improve the performance of RP Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis. you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is the firm's present cash conversion cycle? Average inventory Annual sales Annual cost of goods seld Average accounts receivable Average accunts payable P5.000 P00.000 PH0,000 P0,000 F5000 140.6 days 120.6 days 133.6 days 148.0 days O 126.9 days
A company's Income Tax Payable account decreased from $19 million to $17 million during the year. If its Income tax expense was $92 million, what would be shown as cash pald for Income taxes under the direct method? 16 Multiple Choice eBook A cash outflow of $94 million. A cash outflow of $17 million. A cash outflow of $92 million. A cash outflow of $90 million.
The following table shows income statement and balance sheet data for five U.S. industries in 2017. Calculate the cash cycle for each industry. INCOME STATEMENT AND BALANCE SHEET FOR 2017SELECTED U.S. INDUSTRIES FOR 2017(Figures in $ billions) Income Statement Data: Food Pharmaceuticals oil and coal Computers and Peripherals Food Stores Sales $665.9 $426.5 $801.0 $215.0 $ 473.2 Cost of goods sold 595.1 351.4 756.8 187.7 450.0 Balance Sheet Data: Inventory $ 66.8 $ 55.8 $ 43.2 $ 10.3 $ 26.9 Accounts receivable 55.6 67.1 51.8 22.7 6.4 Accounts payable 48.0 41.3 49.3 36.5 22.7 Note: Cost of goods sold includes selling, general, and…
Dreamz Unlimited INC has accounts payable days of 30 , inventory days of 60 , and accounts receivable days of 35 . What is its Cash conversion cycle?
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Computing Cash Conversion Cycle for Two YearsWinnebago Industries has the following metrics for 2015 and 2014. Amounts in days 2015 2014 Days sales outstanding 25.9 19.5 Days inventory outstanding 47.5 49.3 Days payable outstanding 13.9 13.3 Compute the cash conversion cycle for both years. Round answers to one decimal place. Cash conversion cycle 2015 Answer 2014 Answer
Formulating Financial Statements from Raw Data Following is selected financial information from Greenwood Industries, for its fiscal year ended ($ millions). Cash and cash equivalents, end of year Net cash from operations Net sales Stockholders' equity, end of year Cost of goods sold Net cash from financing Total liabilities, end of year Other expenses, including income taxes Noncash assets, end of year Net cash from investing Net income Effect of exchange rate changes on cash Cash and cash equivalents, beginning of year Net income Cost of goods sold REQUIRED a. Prepare an income statement, balance sheet, and statement of cash flows for Greenwood Industries. Note: Do not use negative signs with your answers in the Income Statement. Net cash flows from operations $2,516.7 5,514.3 26,439.9 14,411.2 Greenwood Industries Income Statement ($ millions) # 17,245.1 (2,912.3) 31,798.9 5,878.7 43,693.4 (729.3) 3,316.2 (31.1) 675.0 # # ♦ + ♦ + $ $ $ 0 0 0 0 0 Greenwood Industries Balance Sheet (5…
Question Observe the following statement: STATEMENT OF CASH FLOW FOR "COUCH POTATO TECHNOLOGIES P/L" For the year ending June 30 2011 2010 2011 $000 $000 Receipts from customers (sales) Payments for purchases Payments to employees Purchase of assets 350 180 50 60 80 80 10 20 Payments for operating expenses 10 15 Additional Information: Industry Average Efficiency : 20% Net profit in 2010 : $21 000 a) Define the term working capital. b) Comment on the cash flow of Couch Potato Technologies P/L in 2010. c) Calculate and comment on the efficiency of Couch Potato Technologies P/L d) Calculate and comment on the net profit of Couch Potato Technologies P/L. e) Recommend TWO strategies that can be used to manage the working capital of Couch Potato Technologies P/L.