Corporation

Balance Sheet

December 31, 2015

Assets
Current assets
	Cash	$2
	Short-term investments	10
	Accounts receivable	52
	Inventory	57
	Other current assets	8
Total current assets			129
Long-term assets
	Net PPE	65
	Goodwill	130
		195
Total assets		$324

	Liabilities
Current liabilities
Accounts payable			$36
Accrued liabilities			25
Total current liabilities			61
Deferred income taxes		20
Long-term debt		82	102
Total liabilities			163
Stockholders' equity
	Common stock	110
	Retained earnings	51
	Total stockholders' equity	161
	Total liabilities and equity	$324

Income Statement
For the Year Ended December 31, 2015
Net Sales	$345
Cost of goods sold	248
Gross Profit	97
Operating expenses	74
Operating Profit	23
Interest Expense	8
Earnings before taxes	15
Income tax expense	4
Net profit	$11

Required:

a. Calculate the following:

i. cash conversion cycle

ii. DuPont system ratios

b. Interpret the DuPont results.