Question: Show all work please. Two years of financial statement data for the Munich Export Corporation are shown below. MUNICH EXPORTS CORPORATION Balance Sheet 2015 2016
Show all work please.
Two years of financial statement data for the Munich Export Corporation are shown below.
MUNICH EXPORTS CORPORATION
Balance Sheet 2015 2016
Cash $50,000 $50,000
Accounts Receivables 200,000 300,000
Inventories 450,000 570,000
Total Current Assets 700,000 920,000
Fixed Assets, Net 300,000 380,000
Total Assets $1,000,000 $1,300,000
Accounts Payable 130,000 $180,000
Accruals 50,000 70,000
Bank Loan 90,000 90,000
Total Current Liabilities 270,000 340,000
Long-Term Debt 400,000 550,000
Common Stock ($.05 par) 50,000 50,000
Additional Paid-in-Capital 200,000 200,000
Retained Earnings 80,000 160,000
Total Liab. & Equity $1,000,000 $1,300,000
Income Statement 2015 2016
Net Sales $1,300,000 $1,600,000
Cost of Goods Sold 780,000 960,000
Gross Profit 520,000 640,000
Marketing 130,000 160,000
General & Administrative 150,000 150,000
Depreciation 40,000 55,000
EBIT 200,000 275,000
Interest 45,000 55,000
Earnings Before Taxes 155,000 220,000
Income Taxes (40% rate) 62,000 88,000
Net Income $93,000 $132,000
- Calculate the inventory-to-sale conversion period for 2016.
- Calculate the sale-to-cash conversion period for 2016.
- Calculate the purchase-to-payment conversion period for 2016
- Calculate the length of Munich Exports cash conversion cycle for 2016.
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