Operating die and Cash Conversion Code 2. Do the changes to 20 0 2016 and she was how the comowy could improve is performance (10 ore tach business day, on were company whes checking to mysle. The wearing time for these checks 1.2 dar. Memahle en recensements from its customers and down the form of reds anges. The cash from the sevents is walable her 15 days. 2. A como 8.000 a week to band maintain a lower cash balance init of Os.coe. The standard deviation of the sunsets 12.20 The applicabile interest rate : 4 percent and the feed cost of transferring funda Co what is the optimal intelcash balance based on the BAT model 3. Aluche merchandisenem2/15, net 4 days. It does not edit and it locally person med atter the invoice date et purchases out to C7,000 per year. Aumeday year, and note that purchases are not of incourts What are the amounts of Free trade credit and Castly trade Suppose the credit terms offered to your fimm by se 2/3 et 30 days. Your free not taking out, but having after day todo waiting to you the constatating the count and paying on to rely your fans talendants or paying on the due date, what is the effecten el percentage out of its notre trade credit, uning day year? 9-30 The student conces CASE 3 (25 points) Income statements and balance sheets for Melia Corporation follow. Income Statements for Years 2015 and 2016 2015 2016 $438.000 -285.000 153,000 -45,000 Net sales -Cost of goods sold Gross profit Administrative expenses - Marketing expenses Research and development -Depreciation EBIT -Interest expense Income before awes -Income taxes (30% rate) Net income -20.000 -14.000 42.000 - 12.000 30.000 5575.000 -380,000 195.000 -65.000 -19.000 -27,000 - 17,000 47.000 -20.000 27,000 -8.000 $19.000 $ 21,000 2015 $ 5.000 190.000 250.000 255.000 Balance Sheets for Years Ended 2014, 2015, and 2016 ASSETS 2014 2015 Cash and marketable securities $10.000 $ 10.000 Rechts 50.000 75.000 6,000 Totalcentes 140.000 180.000 Gross plant and equipment 205.000 205.000 Loss counted depreciation -0.000 Net plant and equipment 177.000 163.000 Totales $317.000 $30.000 Liabilities and Equity 47.000 57.000 Short-term bank loan 40,000 44.000 Accrued abilities 8.000 Total current abilities 95.000 110.000 Long term debet 100.000 90.000 Owners guilty 10.000 Total liabilities and equity $17.000 $300.000 196.000 86.000 110,000 10.000 204.000 80.000 162.000 $448.000 Instructions: 1. Using the above information, calculate for 2015 and 2016 the following: a. Receivables turnover, Inventory turnover, and Payables turnover. (5 points) b. Receivables period, Inventory period, and Payables period. (5 points) c. Operating Cycle and Cash Conversion Cycle. (5 points) 2. Discuss the changes that took place from 2015 to 2016 and suggest the ways how the company could improve its performance. (10 points) Operating die and Cash Conversion Code 2. Do the changes to 20 0 2016 and she was how the comowy could improve is performance (10 ore tach business day, on were company whes checking to mysle. The wearing time for these checks 1.2 dar. Memahle en recensements from its customers and down the form of reds anges. The cash from the sevents is walable her 15 days. 2. A como 8.000 a week to band maintain a lower cash balance init of Os.coe. The standard deviation of the sunsets 12.20 The applicabile interest rate : 4 percent and the feed cost of transferring funda Co what is the optimal intelcash balance based on the BAT model 3. Aluche merchandisenem2/15, net 4 days. It does not edit and it locally person med atter the invoice date et purchases out to C7,000 per year. Aumeday year, and note that purchases are not of incourts What are the amounts of Free trade credit and Castly trade Suppose the credit terms offered to your fimm by se 2/3 et 30 days. Your free not taking out, but having after day todo waiting to you the constatating the count and paying on to rely your fans talendants or paying on the due date, what is the effecten el percentage out of its notre trade credit, uning day year? 9-30 The student conces CASE 3 (25 points) Income statements and balance sheets for Melia Corporation follow. Income Statements for Years 2015 and 2016 2015 2016 $438.000 -285.000 153,000 -45,000 Net sales -Cost of goods sold Gross profit Administrative expenses - Marketing expenses Research and development -Depreciation EBIT -Interest expense Income before awes -Income taxes (30% rate) Net income -20.000 -14.000 42.000 - 12.000 30.000 5575.000 -380,000 195.000 -65.000 -19.000 -27,000 - 17,000 47.000 -20.000 27,000 -8.000 $19.000 $ 21,000 2015 $ 5.000 190.000 250.000 255.000 Balance Sheets for Years Ended 2014, 2015, and 2016 ASSETS 2014 2015 Cash and marketable securities $10.000 $ 10.000 Rechts 50.000 75.000 6,000 Totalcentes 140.000 180.000 Gross plant and equipment 205.000 205.000 Loss counted depreciation -0.000 Net plant and equipment 177.000 163.000 Totales $317.000 $30.000 Liabilities and Equity 47.000 57.000 Short-term bank loan 40,000 44.000 Accrued abilities 8.000 Total current abilities 95.000 110.000 Long term debet 100.000 90.000 Owners guilty 10.000 Total liabilities and equity $17.000 $300.000 196.000 86.000 110,000 10.000 204.000 80.000 162.000 $448.000 Instructions: 1. Using the above information, calculate for 2015 and 2016 the following: a. Receivables turnover, Inventory turnover, and Payables turnover. (5 points) b. Receivables period, Inventory period, and Payables period. (5 points) c. Operating Cycle and Cash Conversion Cycle. (5 points) 2. Discuss the changes that took place from 2015 to 2016 and suggest the ways how the company could improve its performance. (10 points)
