ex 2 -' and ex 3

Prepaid Goodwill 50,000 2 Discuss the flow of cash via the cash conversion cyde EXERCISE 2: DAYS OF WORKING CAPITAL With the following information, calculate the company's DWC for 2012 and 2013, 2012 2013 Profit for the year $ 176,000 $ 225,000 Depreciation/amortization 55,000 70,000 Trade receivables 360,000 385,000 Inventories 450,000 490,000 Trade and other payables 400,000 440,000 Revenue 2,200,000 2,500,000 EXERCISE 3: CASH CONVERSION EFFICIENCY RATIO With the information from Exercise 2, calculate the company's CCE ratio for 2012 and 2013. Assume that in 2011 the company's net working capital was $350,000. Describe several strategies for managing inventories