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 foll
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.
Save the selected company’s most recent financial statements as a PDF and submit/upload with your assignment in order to receive credit.
Calculate the following cash conversion cycle ratios based on the financial statements usingMicrosoft® Excel®: You must show your work in order to receive credit.
- Average inventory
- Inventory turnover rate
- Average account receivable
- Account receivable turnover
- Average collection cycle
Explain in 500 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.
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