ENGRI_127_Homework__9_2008 yash - 2. Given the following...

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ENGRI 127 Homework #9 Due April 17, 2008 1. The following information is available for the Watkins Corporation. For the balance sheet accounts, the year-end amounts are given, the income statement amounts are for the year listed. 2002 2001 2000 Net Sales (total) $325,500 $290,400 $280,500 Net Credit Sales $120,700 $140,600 $150,200 Accounts Receivable $22,800 $19,400 $14,000 Cost of Goods Sold $210,200 $194,500 $185,300 Accounts Payable $40,700 $32,500 $35,200 Depreciation Expense $12,000 $12,800 $11,100 Inventory $65,300 $45,200 $31,600 a. Based on this information, calculate the inventory turnover, the receivables turnover, and the payables turnover for 2001 and 2002. 2001 2002 Inventory Turnover $194,500/ [($45,200+31,600)/2] = 5.065 $210,200/ [($45,200+65,300)/2] = 3.805 Receivables Turnover $290,000/ [($14,000+19,400)/2] = 17.389 $325,500/ [($22,800+19,400)/2] = 15.427 Payables Turnover $194,500/ [($32,500+35,200)/2] = 5.746 $210,200/ [($40,700+32,500)/2] = 5.743 b. Is Watkin’s cash cycle a balanced, favorable, or unfavorable one?
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Unformatted text preview: 2. Given the following fiscal year and fiscal year ending data from Target Corporation, a merchandiser. All amounts are in millions of dollars Jan 31, 2000 Jan 31, 1999 Jan 31, 1998 Net Sales 33,212 30,203 27,019 Net Credit Sales 2,154 1,085 1,543 Accts. Receivable 1,837 1,656 1,590 Cost of Goods Sold 23,029 21,085 18,944 Accts. Payable 3,514 3,150 3,040 Inventory 3,798 3,475 3,290 a. Find the days of inventory, days of accounts payable, and days of accounts receivable, for the fiscal year ended Jan. 31, 2000. b. How much cash is used or provided by the cash cycle in the fiscal year ended Jan. 31, 2000? 1 3. Application Question #4 on p. 248 of the textbook (end of chapter 8) 4. Application Question #6 on p. 248 of the textbook (end of chapter 8) 5. You be the VC 8.2 on p. 250, Virgin Galactic. Read and answer the questions. 2...
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This note was uploaded on 10/19/2008 for the course ENGRI 1270 taught by Professor Callister during the Spring '08 term at Cornell University (Engineering School).

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ENGRI_127_Homework__9_2008 yash - 2. Given the following...

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