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  • Jones Electrical Slides

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    Rohit Awade
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    The document shows key inventory and accounts receivable metrics for a company from 2005 to 2007. Average inventory and days in inventory increased each year. Accounts receivable turnover remained the same each year while average days in accounts receivable increased slightly from 2005 to 2007. The operating cycle increased from 102 to 116 days over this period as well. Average days in payables increased substantially from 2005 to 2007 as average accounts payable balances rose. The cash conversion cycle decreased slightly from 2005 to 2007.

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    Jones Electrical Case Solution

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    Jones Electrical slides

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    The document shows key inventory and accounts receivable metrics for a company from 2005 to 2007. Average inventory and days in inventory increased each year. Accounts receivable turnover remained the same each year while average days in accounts receivable increased slightly from 2005 to 2007. The operating cycle increased from 102 to 116 days over this period as well. Average days in payables increased substantially from 2005 to 2007 as average accounts payable balances rose. The cash conversion cycle decreased slightly from 2005 to 2007.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    25 views6 pages

    Jones Electrical Slides

    Uploaded by

    Rohit Awade
    The document shows key inventory and accounts receivable metrics for a company from 2005 to 2007. Average inventory and days in inventory increased each year. Accounts receivable turnover remained the same each year while average days in accounts receivable increased slightly from 2005 to 2007. The operating cycle increased from 102 to 116 days over this period as well. Average days in payables increased substantially from 2005 to 2007 as average accounts payable balances rose. The cash conversion cycle decreased slightly from 2005 to 2007.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    2005 2006 2007

    Average inventory 260 328 405


    Inventory turnover 6 6 5
    Average days in inventory 62 66 74

    Average accounts receivable 209 248 277


    Accounts receivable turnover 9 9 9
    Average days in AR 40 40 42

    Operating cycle 102 106 116

    Average accounts payable 39 81 161


    Payable deferral period 39 23 12
    Average days in payables 9 16 29

    Cash conversion cycle 92 90 86


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    December 2007 (projected)
    Take discounts Skip Discounts
    Sales 2700 2700

    COGS 2190 2244

    GROSS PROFIT ON SALES 510 456

    Operating expense 417 417

    Interest expense 31 31

    NET INCOME BEFORE TAXES 62 8

    Provision for income taxes (35%) 22 3

    NET INCOME 40 5
    December 2007 (projected)
    Take discounts Skip Discounts
    Cash 23 23

    Accounts receivable 318 318

    Inventory 456 467

    TOTAL CURRENT ASSETS 797 808

    Property & equipment, net 118 118

    TOTAL ASSETS 915 926

    Accounts payable 60 184

    Line of credit payable 424 346

    Accrued expenses 14 14

    Long term debt, current portion 24 24

    TOTAL CURRENT LIABILITIES 523 568

    Long-term debt 110 110

    TOTAL LIABILITIES 633 678

    NET WORTH 283 248

    TOTAL LIABILITIES AND NET WORTH 915 926

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