Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2-3: An analyst has collected the following information for Yunnan Baiyao Group Co.: In billion RMB 2015 2016 2017 2018 2019 Sales 20.74 22.41 24.32

image text in transcribed 2-3: An analyst has collected the following information for Yunnan Baiyao Group Co.: In billion RMB 2015 2016 2017 2018 2019 Sales 20.74 22.41 24.32 27.02 29.67 Net Income 2.756 2.931 3.133 3.48 4.173 Cash inflow from 22.61 27.41 28.86 40.89 34.13 operating activities CFFO 2.18 2.985 1.156 1.549 2.105 Notes/Accounts receivable 4.66 4.96 5.53 5.03 3.85 Prepaid expenses 0.33 0.47 0.42 0.61 0.58 Notes/Accounts payable 3.22 4.38 4.57 5.68 6.24 Inventory 5.63 6.92 8.66 11.03 11.75 Unearned revenue 0.43 1.07 1.09 1.04 1.17 Required: a) Calculate the ratio of operating cash collection over sales b) Based on your calculation in part a), explain why the ratio could be greater (smaller) than one. c) Calculate the ratio of CFFO over net income. d) Based on your calculation in part c), explain why the ratio could be greater (smaller) than oneimage text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Communication Essentials

Authors: Courtland Bovee

4th Canadian Edition

0133508706, 978-0133508703

More Books

Students also viewed these Accounting questions

Question

How will you establish groups?

Answered: 1 week ago

Question

What is cultural tourism and why is it growing?

Answered: 1 week ago