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Key Income Statement Information: Account 2022 2023 Sales Revenue Gross Profit $185,010,000 $112,040,205 $46,589,000 $13,289,050 $191,010,000 $111,040,205 $66,589,000 $9,889,050 Net Operating Income Interest Expense Tax
Key Income Statement Information: Account 2022 2023 Sales Revenue Gross Profit $185,010,000 $112,040,205 $46,589,000 $13,289,050 $191,010,000 $111,040,205 $66,589,000 $9,889,050 Net Operating Income Interest Expense Tax Expense $6,905,081 $8,305,081 Key Balance Sheet Information: Account 2021 2022 2023 Merchandise Inventory $16,010,000 $18,210,000 $17,821,000 $14,520,000 $14,010,000 Trade Receivables Accounts Payable $15,010,000 $12,410,000 $12,520,000 $13,010,000 Required: Calculate the a) Operating Cycle for 2023; and (b) Cash Conversion Cycle for 2023. Names and Definitions of Major Ratios The list below is a summary of the more common financial statement ratios. Calculations can and do vary in practice. Maintaining consistency and the underlying intuition of the calculation is important The list is not exhaustive. A firm's fiscal year end often corresponds to a point in time at which the business activity is at its lowest. Hence, ratios calculated using internal data at different points in the year may differ significantly from those based on published financial statements
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