User Account

All Pages

Problem regarding the net credit position

Assignment Help Finance Basics
Reference no: EM131152679

Net credit position

McGriff Dog Food Company normally takes 20 days to pay for average daily credit purchases of $9,000. Its average daily sales are $10,000, and it collects accounts in 25 days. a.What is its net credit position? That is, compute its accounts receivable and accounts payable and subtract the latter from the former. b. If the firm extends its average payment period from 20 days to 32 days (and all else remains the same), what is the firm's new net credit position? Has it improved its cash flow?

Reference no: EM131152679

Questions Cloud

Which variable is inversely related to pal : If you wanted to determine whether the class's test grades improved from the midterm to the final exam for stats students, which statistical test would you use?
Effective annual percentage cost : If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its non-free trade credit? (Assume a 365-day year.)
What is incremental contribution associated with adding : Western Chassis produces high-quality polished steel and aluminum sheeting and two lines of industrial chassis for the rack mounting of Internet routers, modems, and other telecommunications equipment. Find an optimal solution to Western's problem. W..
Microhedging and macrohedging for a financial institution : Distinguish between Microhedging and Macrohedging for a Financial Institution. How do Forwards differ from Futures?
Problem regarding the net credit position : McGriff Dog Food Company normally takes 20 days to pay for average daily credit purchases of $9,000. Its average daily sales are $10,000, and it collects accounts in 25 days.
How do entrepreneurial opportunities differ from ideas : How do entrepreneurial opportunities differ from ideas? What are the implications of not ensuring that an actual entrepreneurial opportunity exists for one's new venture prior to committing resources into developing that venture
Marketing efforts of for-profit businesses : What are distinctions between the overall marketing efforts of for-profit businesses vs. non-profit organizations?
Moderate current asset investment policy : Edwards Enterprises follows a moderate current asset investmentpolicy, but it is now considering a change, perhaps to a restrictedor maybe to a relaxed policy.
Important to understand cognitive biases in decision-making : Explain why it is important to understand cognitive biases in decision-making. Identify at least three techniques used to mitigate cognitive biases in practice

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Capital asset pricing model to find the required return

For each of the cases shown in the following table, use the capital asset pricing model to find the required return.

  What you have already spent that you should willing to sale

What is the maximum amount, over and above what you have already spent, that you should be willing to spend to assure the sale?

  Evaluate this capital investment project

Healthcare Finance What types of decisions would need to be made before the investment is made? Indicate the main kinds of information/data needed to evaluate this capital investment project.

  If the marr is 12 compute the value of x that makes the two

if the marr is 12 compute the value of x that makes the two alternatives equally desirable.abcost8001000uniform annual

  Cost of equity after the switch

The Border Crossing has no debt and a cost of capital of 11.2 percent. Assume the firm switches to a debt-to-equity ratio of .25 and issues bonds at par with a 6.3 percent coupon. What will be its cost of equity after the switch? Ignore taxes.

  Recommendation to buy different u.s. growth stock funds

As an individual investor, you are attempting to invest in a well-diversified portfolio of mutual funds so that you will be somewhat insulated from any type of economic shock that may occur. Describe recommendation to buy four different U.S. growth s..

  What is the net present value of project e

Project A Project B Project C Project D Project E Today (20,000) (30,000) (8,000) (3,000) (6,000) Year 1 10,000 2,000 1,000 1,000 750

  What capital gains or losses is the investor deemed

The investor sells the shares in the fund during 2014 for $32 per share. What capital gains or losses is the investor deemed to have made in 2012, 2013 and 2014?

  How is deanna taxed on this distribution

King's 2010 taxable income is $9,000. King distributes $11,000 to each shareholder on February 1, 2010, and distributes another $3,000 to each shareholder on September 1. How is Deanna taxed on this distribution?

  Duties and responsibility of the trustee

Explain one of the two sections, including what the section requires and why you feel its requirements had to be put into law by the federal government.

  Asume that the rate of return on the stock is 14 and its

stock analysts just predicted that hybrid engine companys earnings and dividends will grow at 20 each year for the

  If the pe ratio on the sampp 500 is 10 given historical

if the pe ratio on the sampp 500 is 10 given historical earnings growth patterns what would be a reasonable estimate of

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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