SoGood Candy Company has been analyzing their financial statements to determine areas of inefficiency. As part of this analysis, the Finance Department is determining the working capital, how the company is managing its receivables and payables, inventory and cash management.
The following information has been provided regarding the income statement and balance sheet for SoGood Candy Company for the past two years. Use this information to address the questions outlined below.
SoGood Candy Company
Income Statement (in Millions $)
For the Years ending Decemeber 31st
	202X	202Y
Sales	68,000	77,000
COGS	52,000	61,000
Gross Profit	16,000	16,000
Selling & Gen Admin Expenses	6,000	8,000
Operating Profit	10,000	6,000
Interest expense	1,400	1,300
Earnings before Tax	8,600	4,700
Taxes	300	2,350
Earnings After Tax	8,300	2,350
SoGood Candy Company
Balance Sheet (in Millions $)
As of December 31st
	202X	202Y			202X	202Y
Assets				Liabilities
Cash	5,090	6,100		Accounts payable	2,700	3,700
Accounts receivable	3,000	6,900		Notes payable	1,180	1,250
Inventory	6,200	7,000		Accruals	5,600	6,211
Total Current Assets	14,290	20,000		Total current liabilities	9,480	11,161
Net plant, property & equipment	23,087	20,098		Long-term debt	6,500	7,000
Total Assets	37,377	40,098		Total Liabilities	15,980	18,161
				Equity
				Common Stock	2,735	2,735
				Retained Earnings	1,552	17,902
				Total Equity	4,287	20,637
				Total Liabilities & Equity	20,267	38,798
Questions to Address for each year:
What is the company's net working capital?
	202X
	202Y
What is the company's Inventory Days Period?
	202X		days
	202Y		days
What is the company's Receivables Days Period?
	202X		days
	202Y		days
What is the company's Payables Days Period?
	202X		days
	202Y		days
What is the company's Cash Days Cycle?
	202X		days
	202Y		days
Based on the calculated data, what inferrences can you make about the efficiency of SoGood Candy Company?
Now that SoGood Candy Company knows its net working capital, they are exploring different projects. One project, which would add a new line of candy will require an investment of net working capital in the amount of $2.4 million. The company estimates that it will recover this net working capital amount over a 5 year period. The discount rate for this cash flow is 4%. What is the present value of the cost of working capital for this new line of candy?
Net Present Value (NPV):
SoGood Candy Company is evaluating its quarterly working capital needs. Using the information below, calcuate the working capital, permanent working capital, and temporary working capital needs for the company.
Quarter	1	2	3	4
Cash	708	890	670	1250
Accounts Receivable	450	750	1200	800
Inventory	650	550	700	400
Accounts Payable	900	850	1000	1145
Working capital
Permanent W/C
Temporary W/C
To meet the needs of temporary working capital, SoGood Candy Company has decided to issue commercial paper which will mature in 8 months. The commercial paper was issued for 1.6 millin and they received 1.5 million. What is the effective annual rate that they will pay for this loan?
Annual Percentage Rate(APR)
Effective Annual Rate (EAR)