a) What is Net Working Capital and Net Operating Working Capital for 2015 and 2016?
b) Does Cash Conversion Cycle improve over the year? c) What was the free cash flow in 2016?
Please show calculations and all work. Thank you
EXHIBIT 81 SAMPLE BALANCE SHEET AS OF DECEMBER 31 ASSETS 2015 CHANGE 2016 $ 1,500,000 1,000,000 $ 500,000 CASH SHORT-TERM INVESTMENTS ACCOUNTS RECEIVABLE INVENTORY PREPAID EXPENSES TOTAL CURRENT ASSETS 1,500,000 1,300,000 2,100,000 900,000 1300,000 1,700,000 2,600,000 900,000 (200,000) 400,000 500,000 $ 8,000,000 6,800,000 1,200,000 GROSS PROPERTY, PLANT&EQUIPMENT LESS: ACCUMULATED DEPRECIATION NET PROPERTY, PLANT&EQUIPMENT ,000,000 1,500,000 ,500,000 8,100,000 1,300,000 6,800,000 900,000 200,000 700,000 INTANGIBLE ASSETS TOTAL ASSETS 500,000 16,000,000 $ 14,100,000 500,000 1,900,000 LIABILITIES AND SHAREHOLDERS' EQUITY 2016 2015 CHANGE ACCOUNTS PAYABLE SHORT-TERM NOTES PAYABLE TOTAL CURRENT LIABILITIES $ 1,600,000 1,200,000 $ 400,000 500,000 s 3,400,000 2,500,000 900,000 1,800,000 1,300,000 LONG-TERM DEBT TOTAL LIABILITIES 3,900,000 3,500,000 400,000 $ 7,300,000 6,000,000 $1,300,000 COMMON STOCK AT PAR VALUE PAID-IN CAPITAL RETAINED EARNINGS TOTAL EQUITY 200,000 3,600,000 4,300,000 $ 8,700,000 8,100,000 200,000 3,600,000 4,900,000 600,000 600,000 TOTAL LIABILITIES AND EQUITY $ 16,000,000 $ 14,100,000 1,900,000 EXHIBIT 81 SAMPLE BALANCE SHEET AS OF DECEMBER 31 ASSETS 2015 CHANGE 2016 $ 1,500,000 1,000,000 $ 500,000 CASH SHORT-TERM INVESTMENTS ACCOUNTS RECEIVABLE INVENTORY PREPAID EXPENSES TOTAL CURRENT ASSETS 1,500,000 1,300,000 2,100,000 900,000 1300,000 1,700,000 2,600,000 900,000 (200,000) 400,000 500,000 $ 8,000,000 6,800,000 1,200,000 GROSS PROPERTY, PLANT&EQUIPMENT LESS: ACCUMULATED DEPRECIATION NET PROPERTY, PLANT&EQUIPMENT ,000,000 1,500,000 ,500,000 8,100,000 1,300,000 6,800,000 900,000 200,000 700,000 INTANGIBLE ASSETS TOTAL ASSETS 500,000 16,000,000 $ 14,100,000 500,000 1,900,000 LIABILITIES AND SHAREHOLDERS' EQUITY 2016 2015 CHANGE ACCOUNTS PAYABLE SHORT-TERM NOTES PAYABLE TOTAL CURRENT LIABILITIES $ 1,600,000 1,200,000 $ 400,000 500,000 s 3,400,000 2,500,000 900,000 1,800,000 1,300,000 LONG-TERM DEBT TOTAL LIABILITIES 3,900,000 3,500,000 400,000 $ 7,300,000 6,000,000 $1,300,000 COMMON STOCK AT PAR VALUE PAID-IN CAPITAL RETAINED EARNINGS TOTAL EQUITY 200,000 3,600,000 4,300,000 $ 8,700,000 8,100,000 200,000 3,600,000 4,900,000 600,000 600,000 TOTAL LIABILITIES AND EQUITY $ 16,000,000 $ 14,100,000 1,900,000
