Following are the financial statements for the Chenhai Manufacturing Corporation for 2009 and 2010. The venture is

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Following are the financial statements for the Chenhai Manufacturing Corporation for 2009 and 2010. The venture is in financial distress and hopes to turn around its financial performance in the near future.

Following are the financial statements for the Chenhai Manufactu

A. Calculate the sale-to-cash conversion period for Chenhai in both 2009 and 2010.
B. Calculate the inventory-to-sale conversion period for Chenhai in both 2009 and 2010.
C. Calculate the purchase-to-payment conversion period for Chenhai in both 2009 and 2010. Also determine the length of the cash conversion cycle for both 2009 and 2010.
D. What type of working capital restructuring might Chenhai undertake to turn around its financial performance? What other type of asset restructuring might Chenhai consider undertaking?
E. What type(s) of operations restructuring might Chenhai attempt during 2011?
F. What type(s) of financial restructuring might Chenhai attempt during 2011?
G. What prevailing conditions (economic, competitive, etc.) might cause you to believe that Chenhai€™s situation may be a turnaround opportunity versus a permanentproblem?

Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,...
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

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