EBK FUNDAMENTALS OF CORPORATE FINANCE
9th Edition
ISBN: 9781260049237
Author: BREALEY
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 20, Problem 4QP
Summary Introduction
To compute: The cash cycle of each industry.
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The following table shows income statement and balance sheet data for five U.S. industries in 2017.
INCOME STATEMENT AND BALANCE SHEET FOR 2017
SELECTED U.S. INDUSTRIES FOR 2017
(Figures in $ billions)
Oil
and Coal
Computers and
Peripherals
Food
Food
Pharmaceuticals
Stores
Income Statement Data:
$ 682.9
$ 443.5
$ 232.0
221.7
$ 490.2
467.0
Sales
$ 818.0
Cost of goods sold
Balance Sheet Data:
612.1
368.4
773.8
Inventory
Accounts receivable
Accounts payable
$ 83.8
72.6
$ 72.8
84.1
$ 27.3
39.7
87.5
$ 43.9
23.4
39.7
60.2
68.8
65.0
58.3
66.3
Note: Cost of goods sold includes selling, general, and administrative expenses.
Source: U.S. Department of Commerce, Quarterly Financial Report for Manufacturing, Mining, Trade Corporations, and Selected
Service Industries, Quarter 3, issued December 2017.
Calculate the cash cycle for each industry. (Negative amounts should be indicated by a minus sign. Use 365 days a year. Do not
round intermediate calculations. Round your answers to 1 decimal place.)…
Calculate the U.S. division’s operating income for 2017.
Chapter 20 Solutions
EBK FUNDAMENTALS OF CORPORATE FINANCE
Ch. 20 - Prob. 1QPCh. 20 - Prob. 3QPCh. 20 - Prob. 4QPCh. 20 - Prob. 5QPCh. 20 - Prob. 6QPCh. 20 - Prob. 7QPCh. 20 - Prob. 8QPCh. 20 - Prob. 9QPCh. 20 - Prob. 11QPCh. 20 - Prob. 13QP
Ch. 20 - Prob. 14QPCh. 20 - Prob. 15QPCh. 20 - Prob. 16QPCh. 20 - Prob. 17QPCh. 20 - Prob. 19QPCh. 20 - Prob. 20QPCh. 20 - Prob. 21QPCh. 20 - Prob. 22QPCh. 20 - Prob. 23QPCh. 20 - Prob. 27QPCh. 20 - Prob. 28QPCh. 20 - Prob. 29QPCh. 20 - Prob. 30QPCh. 20 - Prob. 31QPCh. 20 - Prob. 32QPCh. 20 - Prob. 33QPCh. 20 - Prob. 34QPCh. 20 - Prob. 35QPCh. 20 - Prob. 36QPCh. 20 - Prob. 37QPCh. 20 - Prob. 38QPCh. 20 - Prob. 39QPCh. 20 - Prob. 40QPCh. 20 - Prob. 41QPCh. 20 - Prob. 42QPCh. 20 - Prob. 43QPCh. 20 - Prob. 44QPCh. 20 - Prob. 45QP
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