The purpose of this assignment is to help students gain a better understanding of calculations of cash flow and strategies to increase it.

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.