Purpose of Assignment

The purpose of this assignment is to help students gain a better understanding of calculations of cash flow and strategies to increase it.

Assignment Steps

Selecta multinational (product-based) company from the following industries:

• Retail
• Food
• Pharmaceutical
• Computer Hardware
• Manufacturing
• Automotive

Reviewthe selected company's most recent financial statements.

CalculateandSubmitthe following cash conversion cycle ratios for your study company based on the financial statementsusingMicrosoftExcel

Production Cycle

• Average inventory
• Inventory turnover rate
• Production Cycle

Collection Cycle

• Average accounts receivable
• Accounts receivable turnover
• Collection Cycle

Payment Cycle

• Average accounts payable
• Accounts payable turnover
• Payment Cycle

Cash Conversation Cycle