Assignment
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:
• Retail
• Pharmaceutical
• Computer Hardware
• Manufacturing
• Automotive
Note that the industries listed above are suggestions - feel free to utilize an organization from any industry that has publicly listed financial statements.
Review the selected company's most recent financial statements and remember to cite your source in the paper.
Calculate the following cash conversion cycle ratios based on the financial statements utilizing Microsoft® Excel® as a tool (the spreadsheet is not the assignment and should not be submitted). We will use this figures in the 700 page paper in the identified section below.
• Average inventory
• Inventory turnover rate
• Average account receivable
• Account receivable turnover
• Average collection cycle
Next, in a 700 word paper, discuss the importance of the cash conversion cycle, including and in this order:
• Discuss the purpose of the cash conversion cycle and its components.
• Analyze the results obtained in the cash conversion cycle equations (where to use your calculations from Microsoft® Excel®).
• 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 includes 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.