Question: Hi, can you help me answer this with a simple explanation of the answer, if possible. Thank you information for Q1 to Q3: Consider the

Hi, can you help me answer this with a simple explanation of the answer, if possible. Thank you

information for Q1 to Q3: Consider the 2012 financial results (in millions of dollars) for the two companies below. (Assume 50 weeks in a year)

Measure ABC Corp XYZ Corp

Sales Revenue

150 25

Cost of Goods Sold

100 15

Gross Profit

50 10

Other Expenses

48 6

Net Income

2 4

Net Receivables

15 5

Inventories

20 3

Property, Plant, and Equipment

20 5

Other Assets

35 7

Total Assets

80 20

Accounts Payable

40 3

Other Liabilities

20 5

Total Liabilities

60 8

Stockholder Equity

20 12

1- The Cash-to-Cash Cycle (C2C) for ABC Corp. would be:

A) +5 weeks

B) +10 weeks

C) -5 weeks

D) -10 weeks

2- The Cash-to-Cash Cycle (C2C) for XYZ Corp. would be:

A) +5 weeks

B) +10 weeks

C) -5 weeks

D) -10 weeks

E) -10 weeks

3-The company is performing better in terms of the Cash-to-Cash Cycle (C2C)?

A) ABC Corp.

B) XYZ Corp.

C) The two companies are performing equally well

D) It is impossible to tell

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