Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If, in 1999, General Mills' business performed as reported but had an ITO of 7.8 instead of 6.1, how much less cash would have been

If, in 1999, General Mills' business performed as reported but had an ITO of 7.8 instead of 6.1, how much less cash would have been tied up in inventory? What would its new ROA have been if this cash was used to pay down debt. Assume a marginal tax rate of 30% on income and an interest rate of 3% on debt. Their net profit was 534.5 million and their total assets were 4140.7 million. The total funded debt was 2317.3.

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_2

Step: 3

blur-text-image_3

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

Ethics in Accounting A Decision Making Approach

Authors: Gordon Klein

1st edition

1118928334, 978-1118928332

More Books

Students also viewed these Accounting questions