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Calculate JWs CCE , Cash Ratio , DCH , and NLB , and interpret the 2-year trend in these measures. How would you describe JWs
Calculate JWs CCE , Cash Ratio , DCH , and NLB , and interpret the 2-year trend in these measures. How would you describe JWs liquidity position?
DCH= Days Cash Held
NLB= Net Liquid Balance
COGS = Cost of Goods Sold
CCE = Cash Conversion Efficiency
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DCH = Cash and Equivalents / (COGS/365)
NLB = Cash and Equivalents - Current Financial Liabilities
Cash Ratio = Cash and Equivalents / Total Assets
CCE = Operating Cash Flow / Revenues
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Use the following financlal statements for problems 1 through 5. JW, Inc.: ncome Statement 2016 $570000 Sales CGS 4,560000 Gross Prof 40.00 operating Expens ($500.00) Depreciation EBIT $61300 nterest Expense EBT $578.00 231.20) $346.80 Dividends ARE $346.80 JW, Inc.: Balance Sheet 2016 Cash and Equivalents 714 BO Accounts Receivable $500.00 30000 nwentary Total Cul ent Assets 1.51480 Fixed Assets $660.00 Accumulated Depreciation 22T00) Net Fixed Assets 43300 Total Assets 1,94780 $32000 Accounts payable 4000 Short Term Notes Payable Accruals $11.00 Total Cul ent Llabllitles 371.00 Long-Term Debt 780.00 Total Llab 51.00 12000 Retained Earnings Total Shareholders' Equity 796.80 Llabl tles and Shareholders' Equity $1947BD 2015 $5,050.00 $404000) 394.00 364.00 21840 21840 2015 120.00 $500.00 $340.00 $960.00 $800.00 $600.00 1560.00 300.00 50,00 360.00 75000 12000 330.00 450.00 1560.00
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