Question
Royal Dutch Shell [RDS] sells certain of its accounts receivable through its wholly owned subsidiary, Royal Receivables Company, a special limited-purpose corporation. The company's net
Royal Dutch Shell [RDS] sells certain of its accounts receivable through its wholly owned subsidiary, Royal Receivables Company, a special limited-purpose corporation. The company's net accounts receivables sold under this facility totalled $306.2, $230.0, and $206.6 million at December 31,2021, 2020, and 2019, respectively. Selected reported financial data follow:
Years ended December 31 (in $millions)
|
|
| 2021 | 2020 | |
| 1 | Sales | 5902 | 3604 | |
| 2 | Accounts Receivables | 624 | 1084 | |
| 3 | Current Assets | 1372 | 4156 | |
| 4 | Current Liabilities | 738 | 3986 | |
| 5 | Total Debt | 2192 | 533 | |
| 6 | Stock Holders Equity | 1900 | 3036 | |
| 7 | Cash flow from operations | 116 | (192) |
a. Compute the impact of the sale of receivables on Royal Dutch Shell 2021:
- Current Ratio
- Cash Cycle
- Receivable turnover ratio
b. Compute the reported and adjusted (for the sale of receivables) debt to equity ratio for 2021.
c. Discuss the impact of the sales on the trend in the firms cash flow 2020-2021
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OECD Public Governance Reviews Brazils Supreme Audit Institution The Audit Of The Consolidated Year End Government Report
Authors: Oecd
1st Edition
9264188088, 978-9264188082
