Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft®Excel® and Explain in 700 words the importance of the cash conversion cycle, including: (see instructions)

Assignment Content

1. 
   
   Resource: Cash Conversion Cycle Analysis Grading Guide
   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.
   Resources

   • Center for Writing Excellence
   • Reference and Citation Generator
   • Grammar and Writing Guides
   • Learning Team Toolkit