Economics Homework Help
FIU Clorox and Ecolab Worksheet
I’m working on a finance project and need an explanation and answer to help me learn.
1For your company, assuming an anticipated 10% sales increase in the following year calculate the following:
a. Working Assets in the most recent year that you have data for.
b. Working Liabilities in the most recent year that you have data for.
c. Working Investment in the same year.
d. Working Investment Factor in the same year.
e. New Working Investment in the following year.
f. What are the company’s additional working investment needs in the upcoming year? g. Can the company cover these additional needs internally? If not, how much it needs from external sources?
2For your company, provide answers to the following questions:
a. Why has leverage increased or decreased during this period?
b. Is your company using debt efficiently? (Use the financial leverage index ratio)
c. How well is your company covering fixed charges? (Use the times interest earned, the fixed charge coverage and the cash flow adequacy ratios).
3 Review your company’s cash flow statement. What are your company’s major cash inflows and outflows? What are their sources of cash? Where do they invest it?
