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Ski Equipment Spanish

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Submitted By akirat
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a) Barnes plans to use the ratios in Exhibit 1 as the starting point for discussions with SKI’s operating executives. He wants everyone to think about the pros and cons of changing each type of current asset and how changes would interact to affect profits and EVA. Based on the Exhibit 1 data, does SKI seem to be following a relaxed, moderate, or restricted working capital policy?

A través del Current, Quick, Turnover Cash and Securities y el DSO ratio podemos notar que SKI equipment tiene una política relajada ya que el uso de capital de trabajo es un poco menor que las ventas de la empresa.
b) How can one distinguish between a relaxed but rational working capital policy and a situation in which a firm simply has a lot of current assets because it is inefficient? Does SKI’s working capital policy seem appropriate?

Reducir riesgos, deudas o inventario excedente nos ayuda a saber cuando una política relajada es adecuada y no es una falla en la administración, pero la empresa parece tener buenas rotaciones, pero el capital de trabajo consume las ganancias.

c) Assume that SKI’s payables deferral period is 30 days. Now, calculate the firm’s cash conversion cycle. INVENTORY CONVERSION PERIOD | 75.7 | RECEIVABLESCONVERSION PERIOD | 45.6 | PAYABLES CONVERSION PERIOD | 30 | CCC | 91.4 |

d) What might SKI do to reduce its cash and securities without harming operations?
In an attempt to better understand SKI’s cash position, Barnes developed a cash budget. Data for the first 2 months of the year are shown in Exhibit 2. (Note that Barnes’ preliminary cash budget does not account for interest income or interest expense.) He has the figures for the other months, but they are not shown in Exhibit 2.

e)Should depreciation expense be explicitly included in the cash budget? Why or why not?

No porque la depreciación no se toma parte como un costo

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