PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS (Not written.. please) 1) La Metropolitana, S.A., has trained its personnel with courses at a renowned private university in the northwest, in order to be up to date in the planning of its financial resources. It knows that, in order to know the necessary rotations to quantify its cash cycle, it is indispensable to apply some financial ratios, studied by its personnel and that it cost a lot of money to do so, so it does not expect an "I don't know" for an answer. So how often you pay your suppliers, how often you rotate your inventories, and how often you charge your customers, will have to be calculated with the following data: Total company sales..........................$9'365,199.36 Proportion of credit sales....................... 73.¾ % Average customer balance............................. $ 767,426.06 Cost of sales ratio...................... 67½ % Average inventory balance...................... $1'053,584.93 Average suppliers' balance................... $ 896,884.26 Beginning inventory................................................ $ 985,556.36 The company spends about $15.525 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 -THERE IS AN EXAMPLE OF EXCEL FORMATTING (IN THE PICTURE) , I WANT YOU TO USE A SIMILAR FORMAT. ---------------------------- Formulas (those given to me by the professor, this to guide you as a bartleby expert.) -Accounts receivable turnover Sales (on credit) / Average customer balance. -Average collection period: 360 /accounts receivable turnover ------------------------------------------------------------------ -Inventory turnover Cost of sales / average inventory -Average inventory age 360/inventory turnover ------------------------------------------------------------------ -Accounts Payable Rotation STEP ONE: Determine Ending Inventory STEP TWO: Determine Purchases STEP THREE: -Calculate accounts payable turnover. Purchases / Average supplier balance -Average payment period 360/accounts payable turnover ------------------------------------------------------------------ Operating Cycle = Average age of inventory + Average collection period Cash Conversion Cycle = Average payable period - Cash cycle Cash Turnover = 360 / Cash Conversion Cycle Minimum Cash Balance = Annual Expense / Cash Turnover
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
(Not written.. please)
1) La Metropolitana, S.A., has trained its personnel with courses at a renowned private university in the northwest, in order to be up to date in the planning of its financial resources. It knows that, in order to know the necessary rotations to quantify its cash cycle, it is indispensable to apply some financial ratios, studied by its personnel and that it cost a lot of money to do so, so it does not expect an "I don't know" for an answer. So how often you pay your suppliers, how often you rotate your inventories, and how often you charge your customers, will have to be calculated with the following data:
Total company sales..........................$9'365,199.36
Proportion of credit sales....................... 73.¾ %
Average customer balance............................. $ 767,426.06
Cost of sales ratio...................... 67½ %
Average inventory balance...................... $1'053,584.93
Average suppliers' balance................... $ 896,884.26
Beginning inventory................................................ $ 985,556.36
The company spends about $15.525 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
-THERE IS AN EXAMPLE OF EXCEL FORMATTING (IN THE PICTURE) , I WANT YOU TO USE A SIMILAR FORMAT.
----------------------------
Formulas (those given to me by the professor, this to guide you as a bartleby expert.)
-
Sales (on credit) / Average customer balance.
-Average collection period:
360 /accounts receivable turnover
------------------------------------------------------------------
-Inventory turnover
Cost of sales / average inventory
-Average inventory age
360/inventory turnover
------------------------------------------------------------------
-Accounts Payable Rotation
STEP ONE: Determine Ending Inventory
STEP TWO: Determine Purchases
STEP THREE:
-Calculate accounts payable turnover.
Purchases / Average supplier balance
-Average payment period
360/accounts payable turnover
------------------------------------------------------------------
Operating Cycle = Average age of inventory + Average collection period
Cash Conversion Cycle = Average payable period - Cash cycle
Cash Turnover = 360 / Cash Conversion Cycle
Minimum Cash Balance = Annual Expense / Cash Turnover
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