FN 601 - Financial Management Lecture 4 Group Discussion Questions 1. Given the information below evaluate the working capital effectiveness of company A based on its operating and cash conversion cycles as compared to the working capital effectiveness of its peer company A. (Note: Compare the liquidity and liquidity needs for Company A and Company B for FY2). Cash and cash equivalents Inventory Receivables Accounts payable Company A (Tshs Mill) Company B (Tshs Mill) FY2 FY1 FY2 FY1 200 110 200 300 500 450 900 900 600 625 1.000 1.100 400 350 600 825 3,000 950 6,000 6,000 Revenues 2,500 750 5,200 5,050 Cost of goods sold 2. Consider the following information for the SKL company and evaluate company's working capital policy (relative to the industry). Is SKL conservative aggressive or just Aure