Essay About 437.8768956Total Current Assets475 And 317.9304193Inventory243

Cresent Case Sol
Balance sheet2004 2005 20062007 E(with tradediscount)2007 ECash45 53 2332 32Accounts Receivable187 231 264317.9304193 317.9304193Inventory243 278 379429.1193577 437.8768956Total Current Assets475 562 666 779.049777 787.8073149Property and Equipment187 202 252303.4790366 303.4790366Accumulated Depreciation-74 -99 -134-173.4522748-173.4522748Total PP&E113 103 118130.0267618 130.0267618Total Assets588 665 784909.0765388 917.8340767Accounts Payable36 42 12058.78347366 179.9494092Line of Credit Payable149 214 249395 310Accrued Expenses13 14 1414 14Long Term Debt, CurrentPosition24 24 2424 24Current Liabilities222 294 407491.7834737 527.9494092Long term debt182 158 134110 110Total Liabilities404 452 541 601.7834737 637.9494092Net Worth184 213 243308 279Total Liabilities and Net Worth588 665 784909 917 Cash flow statementCash Flow Statement2005 2006   C   F   O PAT29 30Depreciation25 35Increase in Account Receivable-44 -33Increase in Inventory-35 -101Increase in Accounts payable6 78Increase in Lines of Credit65 35Increase in Accrued Expenses1 00 0CFODebt Repaid-24 -24CFIInvestment in Fixed Asset-15 -50Change in Cash Balance8 -30Ratio AnalysisRatio Analysis2004 2005 2006Current Ratio2.14 1.91 1.64Quick Ratio1.05 0.97 0.71Inventory Turnover5.37 5.52 4.80Days Of Inventory68.02 66.10 76.09Days Sales Outstanding42.03 44.01 42.98Days Payables10.08 9.99 24.5Fixed Asset Tunover Ratio14.37 18.60 19.00ROA2.38% 4.36% 3.83%ROE7.61% 13.62% 12.35%Cash Conversion Cycle99.97 100.12 95 Conclusions Inventory turnover ratio for 2005 is (1535/278=5.89) and for 2006 is (1818/379=4.8). It showsthat Jones has been overconfident in their predictions. Increasing the inventory is a reason thatthe company is facing cash money shortage. All of these have dramatically increased