Graded Assignment due Jul $14,202402$:$59+03$

Financial Impact of SC Decisions

In $2022,$ you decide to take an internship on Tea$4$U after getting a great result on the GCx course.

Your first task is to analyze SC decisions' impact on the company's financial statements. Your boss

provides you with the following information to consider for all analyses you'll need to do moving

forward.

Assets

CURRENT ASSETS

Cash

Accounts receivables

Inventories

Other current assets

TOTAL CURRENT ASSETS

PROPERTY, PLANT, EQUIPMENT

OTHER NONCURRENT ASSETS

TOTAL ASSETS

Liabilities and Shareholder Equity

CURRENT LIABILITIES

Accounts payables

Other liabilities

Debt due in one year

TOTAL CURRENT LIABILITIES

LONG$-$TERM DEBT

TOTAL LIABILITIES

TOTAL SHAREHOLDERS' EQUITY

TOTAL LIABILITY AND SHAREHOLDERS' EQUITYPart $1$

$0\mathrm{.}0/1\mathrm{.}0$ point $($graded$)$

Checking some recent reports, you notice that Tea$4$U used cash to make a capital equipment

purchase for its warehouses on Jan $1$st$,2022.$ How would this purchase affect the income statement

and balance sheet for $2022?$

Select all correct answers

Total Liabilities and Shareholder's Equity decrease

Current Assets increase

Property, plant, equipment increases

Depreciation increases

None of the abovePart $2$

$0\mathrm{.}0/1\mathrm{.}0$ point $($graded$)$

The Supply Chain Director, Mr$.$ Connor, is gathering information and requesting reports to define

and implement an inventory reduction program. With this, Tea$4$U would reduce its inventory by

$$650.$ Naturally, a negative impact on sales can be expected.

If sales are reduced by $$1800$ and the inventory is reduced by $$650,$ how would working capital

turnover be affected? Assume all other numbers are the same in $2022$ as in the $2021$ reports.

Select the best answer

Working capital turnover will increase by around $7\mathrm{.}9\%$

Working capital turnover will decrease by around $7\mathrm{.}9\%$

Working capital turnover will increase by around $6\mathrm{.}8\%$

Working capital turnover will decrease by around $68\%$

Working capital turnover will not change

None of the abovePart $3$

$\frac{0\mathrm{.}0}{1\mathrm{.}0}$ point $($graded$)$

Mr$.$ Connor wants to know the expected results of his inventory reduction project. After

implementing the project in $2022,$ what would be the cash$-$to$-$cash cycle?

Input your answer using one decimal place. Assume the COGS, Accounts Receivable, and Accounts Payable in $2022$ remain

the same as $2021.$ Answer in full days. Also assume that the inventory reduction happens along the year reaching the total in

the end of the year.Part $4$

$0\mathrm{.}0/1\mathrm{.}0$ point $($graded$)$

Which of the following statements describes supply chain actions that definitely reduce the cash$-$to$-$

cash cycle?

Select the best answer. There is only one correct answer.

Increasing the fill rate by carrying more inventory close to the customers

Increasing inventory levels but delivering faster to customers

Increasing inventory levels but demanding faster payments from customers

Transferring ownership of incoming supplies at the shipment destination instead of at the

shipment point of origin

None of the above