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Case C The following data applies to GoodCorp. (in millions of US $): Cash & marketable securities $315 Fixed assets $546 Net sales $2520 Earnings
Case C The following data applies to GoodCorp. (in millions of US $): Cash & marketable securities $315 Fixed assets $546 Net sales $2520 Earnings Before Interests and Taxes (EBIT) $273 Net Earnings After Taxes (NEAT) $126 Quick Ratio ((CA-Inventory)/CL) 2.1 to 1 Current Ratio (CA/CL) 3.4 to 1 Average Collection Period (ACP) 45.6 days Return on Equity (ROE, NEAT/Net Common Equity) 13% Tax rate 25% On the Liabilities & Equity side, GoodCorp has only common equity, debt and current operating liabilities. a. Find GoodCorp' (1) Accounts Receivables, (2) Current Operating Liabilities, (3) Current Assets, (4) Total Assets, (5) Net Common Equity, and (7) Debt. (10 points) b. If GoodCorp managed to reduce its ACP by 15.60 days (to 30 days) while holding other things constant, how much cash could it generate? (10 points). What is GoodCorp ROIC (post-tax) ? (10 points) C
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