Question

1. From the company's most recent financial statements, find the company's a. total revenue b. total cost of revenue C. average cash (two-year average) d. average accounts receivable (two-year average) e. average inventory (two-year average) f. average accounts payable (two-year average) 2. Calculate the company's net operating working capital 3. Determine the company's daily dollar volume of sales 4. Determine the company's daily cost of goods sold 5a. Calculate the company's inventory turnover b. Calculate the company's average inventory period (days sales in inventory) 6a. Calculate the company's accounts receivable turnover b. Calculate the company's average collection period 7a. Calculate the company's accounts payable turnover b. Calculate the company's average payment period. 8a. Calculate the company's operating cycle b. Explain what that number means 9a. Calculate the company's cash cycle b. Explain what that number means 10 a. If the company's annual cost to carry one dollar of inventory is twelve cents (i.e., 12%), what is the company's annual dollar cost to carry inventory for the most recent year? b. If the company's cost of borrowing funds to carry accounts receivable is 5%, what is the annual dollar cost of carrying accounts receivable for the most recent year? c. If purchasing on credit allows the company to save 5%, what is the company's annual dollar savings from paying on account rather than in cash for the most recent year? 11. What is the total annual cost associated with the company's cash cycle for the most recent year? 12. Calculate the annual dollar savings the company would realize if it a. reduces its inventory holding period by 1%. b. reduces its average collection period by 2%. c. increases the average time to payment of its accounts payable by 0.5%. d. What would be the aggregate annual cost savings if the company was able to achieve all three of the changes above? 13. Assuming the required return on the company's stock is 18%, how would the value of the company change if the company's annual net cash flow were to increase by the amount determined in 12d in perpetuity?

This is sufficent information to answer the question.

solve for 2018

Answer 1

You have asked so many questions in the same post. I have addressed some 9 - 10 questions from the top. Please post the balance questions separately.

Please see the table below. Please be guided by the second column titled “Linkage” to understand the mathematics.The answers appear sequentially. Figures in parenthesis, if any, mean negative values.

Parameter	Linkage	Value	Remarks
a) Total Revenue	A	500,343,000
b) Total cost of revenue	B	373,396,000
c) Average cash	C	6,756,000	For average we need balance sheet for 2 consecutive years, I have considered the 2018 figure here
d) average accounts receivables	D	5,614,000	For average we need balance sheet for 2 consecutive years, I have considered the 2018 figure here
e) average inventory	E	43,783,000	For average we need balance sheet for 2 consecutive years, I have considered the 2018 figure here
f) average accounts payable	F	46,092,000	For average we need balance sheet for 2 consecutive years, I have considered the 2018 figure here
2) Net Operating working capital	G = C + D + E - F	10,061,000
3) Daily dollar sales	H = A / 365	1,370,803
4) Daily cost of goods sold	I = B / 365	1,023,003
5a) Inventory turnover	J = B / E	8.53
5b) Average inventory period	K = E / B x 365	42.80	42.79851686
6a) Accounts receivable turnover	L = A / D	89.12
6b) Average collection period	M = D / A x 365	4.10
7a) Accounts payable turnover	N = B / F	8.10
7b) Average payment period	O = F / B x 365	45.06
8a) Operating cycle	P = K + M	46.89
9a) Cash cycle	Q = P - O	1.84