ssandoval10

ssandoval10 - AEB 3144-Agribusiness Finance Practice...

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AEB 3144—Agribusiness Finance Practice Problem 10 The purpose of this assignment is to give you some practice in determining the operating cycle and its components for a business. The business you will use is Monsanto Company (ticker symbol: MON). You will also need to do this assignment for the company you have chosen for your term project. 1. Use Google Finance ( finance.google.com ) to access Monsanto Company’s financial statements (and your term project company’s statements). Once you find Monsanto, you can scroll down and click on the links to view their financial statements. 2. Be sure to click the button for ANNUAL data in the top right corner of the financial statement pages. The default is set to quarterly data. You will want to use annual data to make your calculations. 3. Using the data provided in the financial statements, calculate the following: Monsanto Inventory turnover COGS/Avg Inv. = \$5188M/ [(\$2453+\$1719)M/2] = 2.487 Receivables turnover Credit Sales/Avg. AR = \$11365M/[(\$2809+\$1906)M/2] = 4.821 Payables turnover COGS/Avg. AP = \$5188M/ [(\$1090+\$649)M/2] = 5.967 Kellogg Inventory turnover COGS/Avg Inv. = \$7455M/ [(\$897+\$924)M/2] = 8.19 Receivables turnover Credit Sales/Avg. AR = \$12822M/[(\$1143+\$1011)M/2] = 11.91 Payables turnover COGS/Avg. AP = \$7455M/ [(\$1135+\$1081)M/2] = 6.73

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