Operating Working Capital of Ceres Gardening Company for 2002–2006 - Accounting Assignment Help

Assignment Task

Question 1
Take a look at the cash flow profile of the company, and analyse the cash flow statement step by step through the following questions.
  
Question 1A: The company’s profits have increased by ~30% from 2002 to 2006(E). How much of the profits estimated for the year 2006(E) will translate to the 'cash flow from operations' for the same year? Which of the three categories in the cash flow statement has contributed majorly to the decrease in the 'change in cash' by the company from 2003 to 2006(E)?  (3+2 marks)
 
(Note: 'Change in cash' is the same as 'Total cash generated'. The (E) beside a year indicates that the figures are expected in the future, i.e. the case study analysis is taking place before the year.)
 
Question 1B: What is the trend in cash flow from 'operating activities', 'investing activities' and 'financing activities' over the years? Identify at least one reason for the increase/decrease in each of the three categories of the cash flow statement. Explain your answer. (Note: Trend indicates whether the numbers are increasing/decreasing over the years) (4+9 marks)
 
Question 1C: Given below is the expected cash flow profile of the company for the year 2006(E).
Cash Flow Profile
Analyse the expected cash flow profile of the company for the year 2006(E) and comment on any 3 of the following factors: 'self-financing of investments', 'funding of investments', 'cash position of the company' and 'free cash flow'. 
Question 2 
As a part of the GetCeresTM program, Ceres Gardening Company started extending an increased credit period to its dealers. Look at the operating working capital of the company and analyse the impact of this decision on its operating working capital step by step through the following questions.
 
Question 2A: Calculate the operating working capital of Ceres Gardening Company for 2002–2006(E). (5 marks)
Question 2B: Calculate the operating working capital/sales ratio of Ceres Gardening Company for 2002 to 2006(E).  (5 marks)
Question 2C: Calculate the DIO, DSO and DPO for the company from 2002 to 2006(E). (4+4+4 marks)
Question 2D: What is the implication of the long credit period given to dealers by Ceres Gardening Limited on its working capital? Explain your answer by specifying at least one reason. (3 mark)
 
Question 3 
Prepare and present the economic balance sheet for Ceres Gardening Company for all the years and calculate the capital employed by the company.
 
 

This Accounting Assignment has been solved by our Accounting Experts at My Uni Papers. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
    

Be it a used or new solution, the quality of the work submitted by our assignment Experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.