Compute the operating cash cycle for FGL for the years 2011, 2012, and 2013. Outline and discuss the implications of this computation.

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Table 4. Statement of Cash Flows (in thousands of Australian dollars) 2010 2011 2012 2013 431,399 744,720 (631,9241 1,176,226 11.113,073) 245,418 (215,2401 943 (6701 $30,451 373,464) 638 120,390) $38,183 (21,5371 $91,259 145,231) $17,922 (8,3711 224 111,257) 6,485 3,079 (39,7371 500 5649 (86,7601 19,521) 869 7,379 73,545 130 1205) (3,4391 Cash Flows from Operating Activities Receipts from customers Payments to suppliers and employees Other revenue Income taxes paid Net cash flows provided by operating activities Cash Flows from Investing Activities Payments for property, plant, and equipment Proceeds from disposal of property, plan, and equipment Interest received Term deposits matured/expired Amount received from joint ventures Acquisition of investments or associates Payment of deferred consideration Net cash flows provided by/used in financing activities Cash Flows from Financing Activities Proceeds from issue of share capital Proceeds from borrowings Repayment of borrowings Interest paid Dividends paid Net cash provided by/used in financing activities Net increase/decrease in cash and equivalents Cash and equivalents at beginning of year Effect of exchange rate changes Cash and equivalents at end of year 119,798) $42,604 17,124) (1.898) (123,787) 18.907 1,458 9,152 1,136 23.011 (4,6981 (2,8501 (4,1311 (2711 (3,4191 13,464) 1658) 17,257) (11,2651 19,654) 14,877) 115,510) $120.8891 $19,921) $5,334 $11,086 34,413 17.440 26,364 39,637 (27,194) 78.285 51,921 51,091 67 $57.920 $78,285 $51,091 $90,728 Table 5. Reconciliation (in thousands of Australian dollars) Profit for the year after tax Depreciation and amortization Other noncash differences Decrease/Increase in trade debtors and receivables Decrease/Increase in inventories and WIP Decrease/Increase in other current assets Increase in deferred tax assets Decrease/Increase in trade and payables Decrease/Increase in current tax liabilities Decrease/Increase in deferred tax liabilities Increase in other provisions Net cash inflow from operating activities 2010 $29,450 3.217 907 (25 202) 19,696) (104) (779) 21,881 10,649 64 2011 $38,832 5.159 11,8151 17,3801 115,0001 671 12151 19,877 12,3111 2012 $19,302 16,292 (43488) (154,396) 18,291 (913) 2.231) 203,417 1,980 2,742 260 $91,259 2013 $62,919 21,361 28,409 119,258 139,1601 927 14,8511 (37,123 110,903) 11,7271 86 $17,922 64 $30,451 365 $38,183 Table 3. Balance Sheet (in thousands of Australian dollars) Unaudited January 31, 2014 June 30, 2010 June 30, 2011 June 30, 2012 June 30, 2013 $51,921 $78.285 $15,316 Current Assets Cash and cash equivalents Short-term deposits Trade and other receivables Inventories and WIP Current tax assets Other assets Noncurrent assets classified as held for sale Total Current Assets $51,091 72,500 196,884 11,331 103,279 42,162 14,621 49,542 29.622 $90 728 2.748 83 254 150491 2535 1.560 40,616 1,574 2,487 23,415) 2,246 6.900 $117,850 $159,023 $334,293 $331,316 $135,796 1.424 73,293 26,789 1,827 36,577 2043 Noncurrent Assets Trade and other receivables Term deposits Property, plant, and equipment Deferred tax assets Investments accounted for using equity method Intangibles Other assets Total Noncurrent Assets Total Assets 7,051 14,260 67,736 4,273 2,545 48,243 10,468 71 546 9,124 15,621 15,637 40 332 44,237 $162,087 54.257 $213.280 144,108 $478,401 132 894 $164.210 90,467 163,760 $299,556 299,909 219,568 11,139 Current Liabilities Trade and other payables Borrowings Current tax liabilities Provisions Other liabilities Total Current Liabilities 52,968 2,789 8,644 525 72 845 3.272 6.387 755 267,169 8,734 8,367 825 3.970 63,731 $64,926 $83,259 $285,095 $234,677 $363,640 9,246 1,512 4.901 51 Noncurrent Liabilities Trade and other payables Borrowings Deferred tax liabilities Investments accounted for using the equity method Provisions Other liabilities Total Noncurrent Liabilities 17,453 2,793 489 14,547 1067 496 308 299 164 489 496 50,662 $52,184 $3,785 $5,559 $29,981 $16,107 Total Liabilities 68,711 93,376 88.818 124.426 315,076 163,325 250,784 213.426 415,824 (116,268) 42,839 44 294 45,430 42,768 Net Assets Equity Issued capital Proht reserve Reserves Retained earnings Total Equity Number of shares Share price 45,430 62 919 1,471 103 606 1159,036) 1,034 49,505 93,376 (9121 81.080 124.462 81,541,569 $5.46 11,221) 119,116 163,325 86,169,014 $4.37 213,426 86,169,014 (116,268 86,169,014 70,699,487 $2.66 $4.20 Table 2. Comprehensive Income Statement in thousands of Australian dollars) June 30, 2013 June 30, 2010 $246,169 June 30, 2011 $421,595 June 30, 2012 $774,879 Unaudited January 31, 2014 $520,041 $1,054,100 (711,430 9.696 (125,171) (79,194) (3.218) 15,000 211,0001 1157,1911 15,159 (516,867) (164502) (16.292) (582) 1656,334 1256,5151 121,3611 15,3801 (1,628) (7.132) 537 (304 18,0431 (12,711) 257 121,0331 188 Revenue Cost of sales Changes in inventories of finished goods and WIP Materials, plant, and contractor costs Employee benefits expense Depreciation and amortization Consulting fees Provision for impaiment losses Other expenses Other gains and losses Expenses Results from Operating Activities Finance income Finance costs Net finance income Share of profit/loss) of associates and jointly controlled entities Net Profit Before Tax Income tax expense Net Profit After Tax Foreign exchange differences (net of tax) Total Comprehensive Income $54,898 3,079 $40,059 1,023 (716) $307 17111 $2,368 15131 $56,753 $64,182 5,698 12.850) $2,848 3,062 $70,082 (20.780 $49,302 (310) $48,992 $93,665 6,939 14,8161 $2,123 15,6791 $90,109 27,1901 $62,919 1,826 $64,745 $40,366 (10,915) $29,451 (346) $29,105 $(324,1621 12.301) S/326,463) 117,9201 $38,833 11,9461 $36,887