FIN 419 Week 3 Individual Assignment Cash Conversion Cycle Analysis
Instructions: Purpose of Assignment The purpose of this assignment is to help students gain a better understanding of calculations of cash flow and strategies to increase it. Assignment Steps Select a multinational company from the following industries:
- Computer Hardware
- 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
- Production cycle
- Average account receivable
- Account receivable turnover
- Average collection cycle Explain in 700 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 paper consistent with APA guidelines. Click
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