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Would some one have time to complete this assignment this morning Go to http://finance.yahoo.com and get a quote for one company of your choice. On

Would some one have time to complete this assignment this morning

  1. Go to http://finance.yahoo.com and get a quote for one company of your choice. On the left column, scroll down and select Income Statement. Write down the annual sales, cost of goods sold, and depreciation expense for the most recent year.
  2. Select the firm's Balance Sheet. Write down the balances shown for the firm's inventories, accounts receivable, and accounts payable.
  3. Using the information from parts a and b, calculate its inventory turnover, accounts receivable turnover, and accounts payable turnover. You should show your work!
  4. Calculate production cycle (also called Days of Sales in Inventory), collection cycle (also called Number of Days of Credit or Days of Sales Outstanding), and accounts payable cycle (also called Days of Payable Outstanding). You should show your work!
  5. What is the companys cash conversion cycle? You should show your work! Please note that there is a typo in the textbook. The correct formula is

CCC = DSI + DSO DPO

  1. Discuss the results that you receive in one paragraph. Should the company decrease cash conversion cycle? Please explain your answer.
  2. In your responses to other students compare the cash conversion cycles of your company with the cash conversion cycle in another students posting. What factors are responsible for these differences? Are these differences firm specific or are they consequences of the nature of the businesses in which these firms operate? Please explain your answers.

Company selection is PepsiCo

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