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.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.18E
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