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Using Exhibit 1, prepare a table to analyze and compare the changes in key financial KPIs between 2008 and 2009, as follows: Inventory growth rate,

Using Exhibit 1, prepare a table to analyze and compare the changes in key financial KPIs between 2008 and 2009, as follows:

  • Inventory growth rate, inventory turns, and sales growth
  • Net Working Capital and Days Working Capital
  • DIO, DSO, DPO, and CCC

Dio: days inventory outstanding

DSO: days sales outstanding

DPO: days payable outstanding (accounts payable, what is owed to suppliers)

CCC Cash to cash conversion

Trying to double-check my solution, ty for the help

Exhibit 1: Select Income Statement and Balance Sheet Values ($MM)
Income Statement Accounts 2008 2009
Net sales 65.0 86.3
Expenses
Cost of goods sold 29.0 38.9
Sales, general and administrative 10.1 14.0
Research and development 13.5 17.0
Depreciation 2.9 3.1
Other expenses 0.6 1.0
Operating expenses 56.1 74.0
Interest expense 2.4 3.0
Taxes 2.0 2.9
Net earnings 4.5 6.5
Balance Sheet Accounts 2008 2009
Assets
Cash 3.2 3.4
Receivables 3.0 4.0
Inventory 4.9 8.7
Prepaid expenses 4.8 6.1
Current assets 15.9 22.2
Plant property and equipment 28.5 32.9
Other long term assets 2.7 4.3
Total long term assets 31.2 37.2
Total assets 47.1 59.4
Liabilities & Equity
Short term debt 2.7 3.2
Accounts payable 2.3 3.0
Accrued liabilities 0.4 0.5
Current liabilities 5.4 6.7
Long term debt 17.2 21.7
Owners equity 24.5 31.0
Total capitalization 41.7 52.7
Total liabilities & equity 47.1 59.4
Months of inventory 2.028 2.690
Cost of goods sold / sales 0.446 0.451
Long term debt / total capital 0.412 0.412

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