Kellogg's Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions K GIS Total revenue $13,547.0 $15,740.4 Cost of sales and services 8,821.0 10,312.9 1,382.0 Average accounts receivable. Average inventory.... Average accounts payable. 1,557.2 1,562.9 2,433.0 1,273.5 2,348.0 a. Compute the following measures for both companies. K GIS 1. Days sales outstanding (DSO) 2. Days inventory outstanding (DIO) 3. Days payables outstanding (DPO) Cash conversion cycle (CCC) 4. K GIS b. Which company better manages its accounts receivable? Which company uses inventory more efficiently? Which company better manages its accounts payable? с. d.

Kellogg's Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions K GIS Total revenue $13,547.0 $15,740.4 Cost of sales and services 8,821.0 10,312.9 1,382.0 Average accounts receivable. Average inventory.... Average accounts payable. 1,557.2 1,562.9 2,433.0 1,273.5 2,348.0 a. Compute the following measures for both companies. K GIS 1. Days sales outstanding (DSO) 2. Days inventory outstanding (DIO) 3. Days payables outstanding (DPO) Cash conversion cycle (CCC) 4. K GIS b. Which company better manages its accounts receivable? Which company uses inventory more efficiently? Which company better manages its accounts payable? с. d.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 8MCQ: Which item is added to net income when computing cash flows from operating activities? a. Gain on...

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