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ORIE_350_Homework__8_2008

ORIE_350_Homework__8_2008 - ORIE 350 2008 Homework#8 Due...

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ORIE 350 Homework #8 Due March 26, 2008 1. Consider the following annual and year-end data from Motorola Inc. All numbers are in millions of dollars. Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2002 Accounts Receivable 6,033 6,114 6,795 Inventory 2,546 2,792 2,869 Accounts Payable 9,856 8,537 8,181 Net Sales 31,323 27,058 26,679 Cost of Goods Sold 20,826 18,101 17,938 a. Find the inventory turnover, the accounts receivable turnover, and the accounts payable turnover for the year ended Dec. 31, 2004. b. Does Motorola have a favorable or unfavorable cash cycle? c. Has the cash cycle improved from the previous year, gotten worse, or stayed the same? Justify your answer with calculations. 2. Here is fiscal year and fiscal year ending data from The Home Depot, a North American home improvement retailer. All amounts are in thousands of dollars Jan 29, 2006 Jan 30, 2005 Net Sales 81,511,000 73,094,000 Net Credit Sales 8,200,000 7,500,000 Accts. Receivable 2,396,000 1,499,000 Cost of Goods Sold 54,191,000 48,664,000 Accts. Payable 9,731,000 8,972,000 Inventory 11,401,000 10,076,000 a. Find the days of inventory, days of accounts payable, and days of accounts receivable, for the fiscal year ended Jan. 29, 2006.
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