Does it appear that ski''s target cash balance is appropriate

Assignment Help Finance Basics
Reference no: EM131106320

Barnes's cash budget for the entire year, although not given here, is based heavily on his forecast for monthly sales. Sales are expected to be extremely low between May and September but then increase dramatically in the fall and winter. November is typically the firm's best month, when SKI ships equipment to retailers for the holiday season. Interestingly, Barnes's forecasted cash budget indicates that the company's cash holdings will exceed the targeted cash balance every month except for October and November, when shipments will be high but collections will not be coming in until later. Based on the ratios in Table IC 15-1, does it appear that SKI's target cash balance is appropriate?

In addition to possibly lowering the target cash balance, what actions might SKI take to better improve its cash management policies and how might that affect itsEVA?

228_rrr.jpg

Reference no: EM131106320

What is the average amount of inventory

Cost of goods sold normally equal 75 percent of sales. If 3LS turns over its inventory 20 times during the year, what is the average amount of inventory that is shown on its

What is the effective interest rate of the note

On January 1, 2012, Wilmes Floral Supplies borrowed $2,413 from Bower Financial Services. Wilmes Floral Supplies gave Bower a $2,500 note with a maturity date of December 31

Why does the tax rate for a comprehensive consumption tax

Why does the tax rate for a comprehensive consumption tax that is designed to replace an equal-yield comprehensive income tax have to be higher than the income tax rate? Wha

Explain how the cash flow situation of the greek tour

Greece's cost of labor and rent are relatively low. Explain why this information is relevant to Nantucket's decision to establish a tour business in Greece. Explain how the ca

Find what is the project net present value

Write a short memo to management explaining your analysis and making a recommendation. Should the project be accepted? Why or why not? (i.e. Explain what your numerical answ

What is the change in cash balance for a firm

What is the change in cash balance for a firm with: $10,000 cash flow from operations, $1,600 cash used for new investment, a reduction in the level of debt of $2,000, $1,00

Record transactions on books of employees retirement fund

Record the transactions on the books of the Employees' Retirement Fund. Prepare a Statement of Changes in Net Assets for the Employees' Retirement Fund for the Year Ended July

Find the unpaid balance

You have taken an amortized loan at 8.7% for 6 years to pay off your new car, which costs $12,000. After 5 years of monthly payments of $214.52, you decide to pay off the lo

Reviews

Write a Review

 
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