1. Using the attached information, calculate for 2015 and 2016 the following:

a) Receivables turnover,Inventory turnover, and Payable turnover.

b)Receivables period,Inventory period,and Payable period.

c)Operating Cycle and Cash Conversion cycle

2. Discuss the changes that took place from 2015 to 2016 and suggest the ways how the company could improve its performance

Balance Sheets for Years Ended 2014, 2015, and 2016 ASSETS 2014 2015 2016 Cash and marketable securities Receivables Inventories Total current assets Grass plant and equipment less accumulated depreciation Net plant and equipment Total assets Liabilities and Equity Payables Short-term bank loan Accrued liabilities Total current liabilities Long-term debt Owners' equity Total liabilities and equity $ 10,000 60,000 70,000 140,000 205,000 -28,000 177,000 $317,000 $ 10,000 75,000 96,000 180,000 205,000 1-42,000 163.000 $343,000 $5,000 105,000 140,000 250,000 255,000 -59.000 196,000 SA46.000 47.000 40,000 8.000 95.000 100.000 122000 $317.000 57,000 44,000 9,000 110.000 90,000 143.000 $343,000 84.000 110,000 10,000 204,000 80.000 162.000 $446,000 Instructions: 1. Using the above information, calculate for 2015 and 2016 the following: a. Receivables turnover, Inventory turnover, and Payables turngyen CASE 3 (25 points) Income statements and balance sheets for Melia Corporation follow. Income Statements for Years 2015 and 2016 2015 $438,000 -285,000 153,000 --45,000 2016 $575,000 -380,000 195,000 -65,000 -39,000 -27,000 -17.000 Net sales -Cost of goods sold Gross profit -Administrative expenses -Marketing expenses -Research and development Depreciation EBIT Interest experise Income before taxes Income taxes (3096 rate) Net income -32,000 - 20,000 -14.000 42,000 47,000 -12.000 -20,000 30,000 -9,000 27,000 -8,000 $ 19,000 $ 21.000