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.