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The following are the Income Statement (Jan. 1, 2018 - Dec 31, 2018) and Balance Sheets (both Jan 1, 2018 and Dec. 31, 2018) for

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The following are the Income Statement (Jan. 1, 2018 - Dec 31, 2018) and Balance Sheets (both Jan 1, 2018 and Dec. 31, 2018) for ABC Corp. Use this information to answer questions #1-3 and 5. ABC Corp. 2018 Income Statement Details (Jan 1 - Dec 31) Sales $500,000 Cost of goods sold $300,000 Selling and Admin Costs $60,000 Depreciation $50,000 EBIT Interest expense $90,000 $10,000 EBT $80,000 Tax rate = 25% $20,000 Dividends paid Additions to retained earnings $40,000 ABC Corp. Balance Sheet, Jan. 1, 2018 Cash Accounts receivable Inventory $10,000 $20,000 $15,000 Accounts Payable Notes payable $5,000 $10,000 $45,000 Current assets $15,000 Current Liabilities Net fixed assets $300,000 Long term debt Equity Total Liabilities and Equity $150,000 $180,000 $345,000 Total assets $345,000 ABC Corp. Balance Sheet, Dec. 31, 2018 Cash Accounts Receivable $12,000 $22,000 Accounts Payable Notes Payable $7,000 $14,000 ABC Corp. Balance Sheet, Dec. 31, 2018 Cash Accounts Receivable Inventory $12,000 $22,000 $20,000 Accounts Payable Notes Payable $7,000 $14,000 Current assets $54,000 Current Liabilities $21,000 Net fixed assets $400,000 Long term debt Equity Total Liabilities and Equity $160,000 $273,000 $454,000 Total assets $454,000 1. Based on the statements from ABC Corp. , prepare a cash flow statement in the following format for the year 2018: Cash flow from operations (10 points) Cash flow from investing (10 points) Cash flow from financing (10 points) 2. Calculate the Cash Conversion Cycle for year-end 2018. Accounts Receivable days (5 points) Inventory days (5 points) Accounts Payable days (5 points) Total CCC: (5 points) If you were consulting ABC Corp. on how to improve their Cash Conversion Cycle, which one of the components of the CCC would you have them focus on and why? (5 points)

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