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Unformatted text preview: beginning of period invested capital. Dividends for 1995 are $85. ABC paid off it’s short term debt in 1995 and sold additional common shares. In 1995, inventory turnover was 4.0, the accounts payable deferral period was 40 days, and the cash conversion cycle was 60 days. The component ratios of the cash conversion cycle are calculated using 365 days in a year. In addition, these ratios use only the 1995 financial statements (i.e., not beginning of period balance sheet amounts). Capital expenditure in 1995 was $135. Required: Based on the information at hand, use the methodologies developed in class to find free cash flow using both the operational and the financial definitions for 1995. Solution...
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This note was uploaded on 02/10/2011 for the course BUS 312 taught by Professor Alan during the Spring '03 term at Simon Fraser.
- Spring '03