“Income Statement.”
- Go to http://finance.yahoo.com and get a quote for one company of your choice. On the left column, scroll down and select “Income Statement.” Write down the annual sales and cost of goods sold for the most recent year.
- Select the firm’s Balance Sheet. Write down the balances shown for the firm’s inventories, accounts receivable, and accounts payable.
- Using the information from above, calculate the following. You should show your work!
• Inventory turnover = COGS / Inventory
• Days Sales in Inventory (DSI) = 365 / Inventory Turnover
• Accounts receivable turnover = Sales / Accounts Receivable
• Days Sales Outstanding (DSO) = 365 / Accounts Receivables turnover
• Account payables turnover = COGS / Accounts Payable
• Days Payables Outstanding. (DPO) = 365 / Account Payables turnover - What is the company’s cash conversion cycle (CCC)?