5. Discuss the firm's cash-to-cash (operating) cycle for 2018 & 2017. Be sure to include the values for the various turnover ratios related to short-term solvency (i.e., Accounts Receivable, Inventory, and Accounts Payable) as well as the Days Outstanding (Held) for each turnover ratio. Then determine the amount of external financing required to support working capital needs based on your answers to the aforementioned ratios. Sep. 30, 2018 Oct. 01, 2017 Consolidated Balance Sheets - USD ($) $ in Millions OPERATING ASSETS Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid Expense and Other Assets, Current Long-term investments Equity and cost investments Property, plant and equipment, net Noncurrent Deferred income taxes, net Other long-term assets Other intangible assets Goodwill LESS: OPERATING LIABILITIES Accounts payable Accrued liabilities Insurance reserves Stored value card liability Other long-tern liabilities Net Operating Assets $ 8,756.3 181.5 693.1 1,400.5 1,462.8 267.7 334.7 5,929.1 134.7 412.2 1,042.2 3,541.6 $ 2,462.3 228.6 870.4 1,364 358.1 542.3 481.6 4,919.5 795.4 362.8 441.4 1,539.2 1.179.3 2,298.4 213.7 1,642.9 349.9 18,472.2 782.5 1,934.5 215.2 1,288.5 0 10,144.9 3,932.6 FINANCING OBLIGATIONS Long-term debt Deferred Revenue, Noncurrent Deferred Tax and Other Liabilities, Noncurrent Noncontrolling interests Financing Obligations 9,090.2 6,775.7 1,430.5 6.3 17,302.7 750.9 6.9 4,694.8 COMMON EQUITY Common stock ($0.001 par value) - authorized, 2,400.0 shares; issued and outstanding, 1,460.5 and 1,485.1 shares, respectively 1.3 1.4 Additional paid-in capital Retained earnings Accumulated other comprehensive income/(loss) Common Equity Total Financing Obligations and Common Equity 41.1 1,457.4 (330.3) 1,169.5 18,472.2 41.1 5,563.2 (155.6) 5,450.1 10,144.9 12 Months Ended Sep. 30, 2018 Oct. 01, 2017 Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions Net Revenues: Revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Restructuring Charges Income from equity investees Gain resulting from acquisition of joint venture Gain (Loss) on Disposition of Business Interest income and other, net Operating Profit/(Loss) before Taxes Provision for income taxes at effective tax rate Net Operating Profit After Taxes (NOPAT) FINANCING EXPENSE Interest expense X (1- Effective tax rate) Net earnings/(loss) attributable to noncontrolling interests Net Financing Expense (After Taxes) Net Income to Common Shareholders Effective Tax Rate $ 24,719.5 (10,174.5) (7,193.2) (539.3) (1,247) (1,759) (224.4) 301.2 1,376.4 499.2 191.4 $5,950.3 1,299.2 $ 4,651.1 $ 22,386.8 (9,034.3) (6,493.3) (500.3) (1,011.4) (1,450.7) (153.5) 391.4 0 93.5 181.8 $ 4,410.0 1,463.3 $ 2,946.7 (104.1) (0.3) (104.4) $ 4,546.8 21.83% (41.3) 0.2 (41.1) $ 2,905.6 33.18%