If, in 1999, General Mills’ business performed as reported but had an ITO of 7.8 instead of 6.1, how much less cash woul
Posted: Sun Jul 03, 2022 1:08 pm
If, in 1999, General Mills’ business performed as reported buthad an ITO of 7.8 instead of 6.1, how much less cash would havebeen tied up in inventory? What would its new ROA have been if thiscash was used to pay down debt. Assume a marginal tax rate of 30%on income and an interest rate of 3% on debt.