Professional Documents
Culture Documents
1993
1994
1995
890
608
282
215
67
7
23
51
2014
1565
449
310
139
4
41
102
2873
2440
433
472
-39
0
-3
-36
3475
2737
738
489
249
-36
64
149
Operating Assets
1995
1996
1997
40%
1997
50%
Total Assets
Short Term Investments
Total Operating Assets
1594
484
1110
2148
591
1557
2257.65
2413.35
Sales
COGS
Gross Profit
Operating Expense
Operating Income
Finance & Other Income
Income Taxes
Net Profit
34.5
47
40.25
1994
Cash
Inventory
Accounts Receivable
Accounts Payable
Net Working Capital
Changes in Net Working Capital
Net Profit
Retained Earning Beginning
Required Funds
43
293
538
403
471
1996
55
429
726
466
744
273
272
311
161
45%
1997
55%
55
746.3096
1279.124
905.1945
1175.24
431.2395
320.28
311
55
827.3654
1417.409
999.7597
1300.01
556.0147
342.9
311
543.96 646.115
In 1997, Dell Net Profit and RE can not cover its working capital. So, in order to funding its work
internally, they need to adjust their working capital by,
(1) Speeding up the turnover of Inventory, (2) Speeding up the collectin of working capital, and (3
payment of accounts payable as long as possible
Current
Proposed
55%
34.5
29
30
47
39
40
40.25 40.69894 44.72629
45%
27.30106 25.27371
When doing the proposed effeciency in use of working capital, the required funds needed for worki
1996
5296
4229
1067
690
377
6
111
272
45%
7679.2
6132.05
1547.15
1000.5
546.65
6
221.06
331.59
1997
55%
8208.8
6554.95
1653.85
1069.5
584.35
6
236.14
354.21
65%
8738.4
6977.85
1760.55
1138.5
622.05
6
251.22
376.83
471
322
1997
60%
2569.05
1997
65%
55
908.4213
1555.693
1094.325
1424.79
680.7898
365.52
311
748.27
Proposed
Operating Assets
1995
1996
Total Assets
Short Term Investments
Total Operating Assets
Required Funds
1594
484
1110
1594
403
1191
1997
40%
1997
50%
2148
591
1557
447
2179.8
622.8
2335.5
778.5
2148
466
1682
491
272
2438.9
756.9
320.28
2607.1
925.1
342.9
763
1077.18
1268
1997
60%
2491.2
934.2
2775.3
1093.3
365.52
1458.82