calculations of cash flow
FIN/419 Version 6
Finance for Decision Making
Cash Conversion Cycle Analysis
Purpose of Assignment
The purpose of this assignment is to help students gain a better understanding of calculations of cash flow and strategies to increase it.
Assignment Steps
Select a multinational company from the following industries:
Retail
Pharmaceutical
Computer Hardware
Manufacturing
Automotive
Review the selected company’s most recent financial statements.
Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft® Excel®:
Average inventory
Inventory turnover rate
Average account receivable
Account receivable turnover
Average collection cycle
Explain in 700 words the importance of the cash conversion cycle, including:
Discuss the purpose of the cash conversion cycle and its components.
Analyze the results obtained in the cash conversion cycle equations.
Propose strategies to increase the cash flows of the company under study.
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
Materials
Cash Flow Estimation
ONLY THE HIGHLIGTED PART
Purpose of Assignment
The purpose of this assignment is to allow students the opportunity to understand the importance of cash flow and its usefulness in business.
Assignment Steps
Create a 250-word summary explaining the importance of cash flow.
Include the following:
How cash flow differs from profits.
The author of Financial Management mentions seven issues that have to be kept track of during a comprehensive cash flow estimation process. Explain the role of each, when estimating cash flow.
Why should cash flow be projected for a new product and what other factors should be included in the analysis?
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
Note: Grades are awarded based upon individual contributions to the Learning Team assignment. Each Learning Team member receives a grade based upon his/her contributions to the team assignment. Not all students may receive the same grade for the team assignment.
