a). Cash conversion cycle: Company X reported the following information for the last fiscal year. Assets Company X As of
Posted: Sun May 29, 2022 6:37 pm
- A Cash Conversion Cycle Company X Reported The Following Information For The Last Fiscal Year Assets Company X As Of 1 (64.11 KiB) Viewed 19 times
cycles.
What is the financing strategy of Company X? Aggressive or
conservative? Is the strategy already proper enough for the
company? Please give your recommendation for them!
a). Cash conversion cycle: Company X reported the following information for the last fiscal year. Assets Company X As of 12/31/2021 Liabilities and Equity Inventories USD 200 000 Accounts Receivable 180 000 Borrowings USD 190 000 200 000 Cash and financial assets 25 000 Accounts payable and available for sale accruals Other current assets 18 000 Total current assets USD 423 000 Total current liabilities USD 390 000 Fixed Assets 500 000 Long-term debt 150 000 Equity 383 000 Total Assets USD 923 000 USD 923 000 Total Liabilities & Equities USD 800 000 Net sales (credit) Cost of goods sold 380 000