Calculate net working capital

Assignment Help Financial Management
Reference no: EM131061041

You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $950,000, accounts receivable = $1,800,000, inventory = $2,300,000, accrued wages and taxes = $590,000, accounts payable = $890,000, and notes payable = $690,000. Calculate Goodman Bees' net working capital.

Reference no: EM131061041

Questions Cloud

About the stock capital gain yield : A company has just paid a dividend of 3.61$. Its discount rate is 8.4%, and the expected perpetual growth rate is 5.1%. What is the stock's Capital Gain Yield?
Case-shouldice hospital-a cut above : How well does the hospital currently utilize its beds? Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day.) How would you affect the utilization of the bed cap..
Some major nonfinancial uncertainties : What are some major nonfinancial uncertainties that a company should consider when making decisions on where to source product? Complete the question for a U.S. domestic company. Complete the question for a company operating on a global basis.
Write about microgenics glucosamine 1500 chondroitin complex : Description assignment: It is about Microgenics Glucosamine 1500 Chondroitin Complex. Glucosamine 1500 Complex with Chondroitin is a comprehensive high potency formula to help increase joint mobility, relieve swelling, reduce joint inflammation and..
Calculate net working capital : You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $950,000, accounts receivable = $1,800,000, inventory = $2,300,000, accrued wages and taxes ..
Calculate the purchase price to produce an annual yield : An investor purchased an eight-year financial instrument having the following features. The investor receives payments of $10,000 at the end of each year for eight years.  Calculate the purchase price to produce an annual yield of 6% over the eight y..
Forecasts the free cash flows : Kale Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11.0% and FCF is expected to grow at a rate of 5.0% after Year 2, what is the firm's total corporate value, in millions?
What is the bonds coupon rate : Suppose a 5 year $1,000 bond with annual coupons has a price of $896.42 and a yield to maturity of 5.5%. What is the bonds coupon rate? Please show how you got your answer
Dividend is expected to grow at a rate : A stock is currently priced at $27.90. Its dividend is expected to grow at a rate of 6.10% per year indefinitely. The stock's required return is 8.30%. The stock's predicted price 3 years from now, P3, should be $________.

Reviews

Write a Review

Financial Management Questions & Answers

  Which bond has more interest rate risk

Bond x pays an 8% annual coupon and bond y pays a 4% annual coupon. Both bonds have 10 years to maturity. The yield to maturity for both bonds is now 8%. Which bond has more interest rate risk? Why? Assume that you have an opportunity to buy the stoc..

  What is the initial price on the bond

A 10-year maturity mortgage-backed bond is issued. The bond is a zero coupon bond that promises to pay $10,000 (par) after 10 years. At issue, bond market investors require a 15 percent interest rate on the bond. What is the initial price on the bond..

  What is the conversion value of the bond

KORO Corporation's common stock currently sells for $27.50. Its 8% convertible bonds (issued at par $1000) now sell for $950. The bonds can be converted into 40 shares of common stock. What is the conversion value of the bond?

  Manufacturing firm-how many decision alternatives are there

A small manufacturing firm is considering the purchase of a new machine. Two types of machines are available on the market. The lives of Machine A and Machine B are four years and six years respectively, but the firm does not expect to need the servi..

  Describe advantages and disadvantages of choice you made

Would you seek to acquire a company within the European Union or outside of it and describe the advantages and disadvantages of the choice you made.

  Under an effective interest rate

Under an effective interest rate of 5%, the sum of the present value of an annuity which pays $4 at the end of each period for n periods and the present value of a unique payment of $100 at the end of the nth period is equal to the sum of the present..

  Whose responsibility it is to communicate the vision

Whose responsibility it is to communicate the vision of the company during a time of mergers to the employees and about the impending mergers of the company being acquired?

  Calculate the value of share of stock

Using the P/E ratio approach to valuation, calculate the value of a share of stock.

  Coupon bonds on the market-what is the current bond price

Lycan, Inc., has 8.6 percent coupon bonds on the market that have 9 years left to maturity. The bonds make annual payments. Required: If the YTM on these bonds is 10.6 percent, what is the current bond price?

  Compute earnings per share for the levels

Southland industries has 60,000 0f 14.1% (annual interest) bonds outstanding, 1,800 shares of preferred stock paying annual dividend of $5 per share, and 7,000 shares of common stock outstanding. Assuming that the firm has a 40% tax rate, compute ear..

  What type of bond instrument

You are an investment banker advising a Euro bank about a new international bond offering it is considering. The proceeds are to be used to fund Eurodollar loans to bank clients. What type of bond instrument would you recommend that the bank consider..

  Return on your investments in retirement

You want to know in which scenario you need to save the LEAST amount of money monthly. First plan is to have $1,250,000 in 25 years when you retire and your investments will earn 9%. The second option is to receive a monthly payment of $6,000 in reti..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd