Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with the following assignment: (Note: in that url the company I selected was Starbucks and here is the link for it. You

I need help with the following assignment: (Note: in that url the company I selected was Starbucks and here is the link for it. You will need to use the url to select the balance sheet, income statement tabs)

http://finance.yahoo.com/quote/SBUX.SW?p=SBUX.SW

  1. 1.Go tohttp://finance.yahoo.comand get a quote for one company of your choice. On the left column, scroll down and select Income Statement. Write down the annual sales, cost of goods sold, and depreciation expense for the most recent year.For some companies depreciation expense can be found in Cash Flow statement.
  2. 2. Select the firm's Balance Sheet. Write down the balances shown for the firm's inventories, accounts receivable, and accounts payable.
  3. 3. Using the information from parts a and b, calculate its inventory turnover, accounts receivable turnover, and accounts payable turnover.You should show your work!
  4. 4. Calculate production cycle(also called Days of Sales in Inventory), collection cycle(also called Number of Days of Credit or Days of Sales Outstanding), and accounts payable cycle(also called Days of Payable Outstanding).You should show your work!
  5. 5. What is the companys cash conversion cycle?You should show your work!Please note that there is a typo in the textbook. The correct formual isCCC = DSI + DSO DPO
  6. 6.Discusstheresultsthatyoureceiveinoneparagraph.Shouldthecompanydecreasecashconversioncycle?Pleaseexplainyouranswer.

I really appreciate assistance that you can provide!!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations Of Finance

Authors: Arthur J. Keown, John H. Martin, J. William Petty

10th Edition

0135160618, 978-0135160619

More Books

Students also viewed these Finance questions

Question

Find -1 (x), and give the domain and range. (x) = e x + 10

Answered: 1 week ago