Refer to the Financial Statements for Wal-Mart, BelowB Working Capital Management Is an Important Consideration for Many

The Answer of Refer to the Financial Statements for Wal-Mart, BelowB Working Capital Management Is an Important Consideration for Many

Refer to the Financial Statements for Wal-Mart, BelowB Working Capital Management Is an Important Consideration for Many

The Answer of Refer to the Financial Statements for Wal-Mart, BelowB Working Capital Management Is an Important Consideration for Many

Solved

Refer to the Financial Statements for Wal-Mart, Below

question 51

Essay

Refer to the financial statements for Wal-Mart, below
$Refer to the financial statements for Wal-Mart, below a. Calculate for X7 the ratios listed below. X6 numbers are provided for comparative purposes. \begin{array}{lr} &X6&X7\\ \text { Inventory turnover } & 4.96 \\ \text { Days' inventory outstanding } & 77.20 \\ \text { Accounts receivable turnover } & 120.58 \\ \text { Days' receivable outstanding } & 3.28 \\ \text { Payables turnover } & 12.39 \\ \text { Days' payables outstanding } & 31.10 \\ \text { Length of operating cycle } & 80.48 \\ \text { Length of cash cycle } & 49.37 \\ \text { Current ratio } & 1.51 \\ \text { Quick ratio } & 0.12 \end{array} b. Working capital management is an important consideration for many companies. Which component of Wal-Mart's working capital do you think it spends most time managing? That is, which component is likely to be the most important? Why? What has happened to this component from X6 to X7? Note: Use ending inventory, ending accounts receivable, and ending accounts payable in the calculation of days' inventory outstanding, days' receivable outstanding, and days' payables outstanding respectively. Use average inventory, average accounts receivable, and average accounts payable in the calculation of inventory turnover, accounts receivable turnover, and payables turnover respectively.$
$Refer to the financial statements for Wal-Mart, below a. Calculate for X7 the ratios listed below. X6 numbers are provided for comparative purposes. \begin{array}{lr} &X6&X7\\ \text { Inventory turnover } & 4.96 \\ \text { Days' inventory outstanding } & 77.20 \\ \text { Accounts receivable turnover } & 120.58 \\ \text { Days' receivable outstanding } & 3.28 \\ \text { Payables turnover } & 12.39 \\ \text { Days' payables outstanding } & 31.10 \\ \text { Length of operating cycle } & 80.48 \\ \text { Length of cash cycle } & 49.37 \\ \text { Current ratio } & 1.51 \\ \text { Quick ratio } & 0.12 \end{array} b. Working capital management is an important consideration for many companies. Which component of Wal-Mart's working capital do you think it spends most time managing? That is, which component is likely to be the most important? Why? What has happened to this component from X6 to X7? Note: Use ending inventory, ending accounts receivable, and ending accounts payable in the calculation of days' inventory outstanding, days' receivable outstanding, and days' payables outstanding respectively. Use average inventory, average accounts receivable, and average accounts payable in the calculation of inventory turnover, accounts receivable turnover, and payables turnover respectively.$
a. Calculate for X7 the ratios listed below. X6 numbers are provided for comparative purposes.
$\begin{array}{lr}&X6&X7\\\text { Inventory turnover } & 4.96 \\\text { Days' inventory outstanding } & 77.20 \\\text { Accounts receivable turnover } & 120.58 \\\text { Days' receivable outstanding } & 3.28 \\\text { Payables turnover } & 12.39 \\\text { Days' payables outstanding } & 31.10 \\\text { Length of operating cycle } & 80.48 \\\text { Length of cash cycle } & 49.37 \\\text { Current ratio } & 1.51 \\\text { Quick ratio } & 0.12\end{array}$
b. Working capital management is an important consideration for many companies. Which component of Wal-Mart's working capital do you think it spends most time managing? That is, which component is likely to be the most important? Why? What has happened to this component from X6 to X7?
Note: Use ending inventory, ending accounts receivable, and ending accounts payable in the calculation of days' inventory outstanding, days' receivable outstanding, and days' payables outstanding respectively. Use average inventory, average accounts receivable, and average accounts payable in the calculation of inventory turnover, accounts receivable turnover, and payables turnover respectively.

Definitions:

Prescriptive Theories

Prescriptive theories offer specific recommendations or guidelines for actions, aiming to produce desired outcomes based on established principles or empirical findings.

Particular Type

A specific category or class with distinct characteristics that distinguish it from others.

Necessary Conditions

Necessary conditions are requirements or prerequisites that must be met for a certain event to occur or for a certain statement to be true, without which the event or statement cannot materialize.

Leadership Theories

A set of concepts and models that explain how leadership influences the performance and behavior of individuals and groups.