PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS CC1) La Sorpresa, S.A., a leading local company, knows that in order to know the rotations necessary to quantify its cash cycle, it is essential to apply some financial ratios. So how often it pays its suppliers, how often it rotates its inventories, and how often it charges its customers, will have to be calculated with the following data: Total sales of the company..........................$4'586,109.47 Proportion of credit sales....................... 60% Average customer balance............................. $ 343,958.21 Cost of sales ratio...................... 55% Average inventory balance...................... $ 420,393.37 Average supplier balance................... $ 288,004.21 Beginning Inventory................................................ $ 385,554.55 The company spends about $8.125 million in operating cycle investments. With this data it is necessary to calculate: 1) The operating cycle. 2) The cash conversion cycle. 3) The cash turnover. 4) The minimum cash balance.
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
CC1) La Sorpresa, S.A., a leading local company, knows that in order to know the rotations necessary to quantify its cash cycle, it is essential to apply some financial ratios. So how often it pays its suppliers, how often it rotates its inventories, and how often it charges its customers, will have to be calculated with the following data:
Total sales of the company..........................$4'586,109.47
Proportion of credit sales....................... 60%
Average customer balance............................. $ 343,958.21
Cost of sales ratio...................... 55%
Average inventory balance...................... $ 420,393.37
Average supplier balance................... $ 288,004.21
Beginning Inventory................................................ $ 385,554.55
The company spends about $8.125 million in operating cycle investments. With this data it is necessary to calculate:
1) The operating cycle.
2) The cash conversion cycle.
3) The cash turnover.
4) The minimum cash balance.
Note:
In the image, this is the original exercise, it is in Spanish, but it is easy to understand.
Very important Note:
It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
please... understand the context of the exercise in Spanish, it is easy to understand.
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