User Account

All Pages

What recommendations relative to the amount

Assignment Help Finance Basics
Reference no: EM131110786

The new owners of Bluegrass Natural Foods, Inc., have hired you to help them diagnose and cure problems that the company has had in maintaining adequate liquidity. As a first step, you perform a liquidity analysis. You then do an analysis of the company's short-term activity ratios. Your calculations and appropriate industry norms are listed.

2351_w.jpg


a. What recommendations relative to the amount and the handling of inventory could you make to the new owners?

b. What recommendations relative to the amount and the handling of accounts receivable could you make to the new owners?

c. What recommendations relative to the amount and the handling of accounts payable could you make to the new owners?

d. What results, overall, would you hope your recommendations would achieve? Why might your recommendations not beeffective? 

Reference no: EM131110786

Questions Cloud

Which areas require further analysis and investigation : A common-size income statement for Creek Enterprises' 2011 operations follows. Using the firm's 2012 income statement presented in Problem 3-18, develop the 2012 common-size income statement and compare it to the 2011 statement. Which areas require f..
The transactions below took place during the year 2010 : Dividends in the amount of $123,000 were declared. They are payable in January of next year. Show by journal entries the adjustments that would be made on a worksheet for a statement of cash flows.
Evaluate and recommend appropriate action on the loanrequest : Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages and Creek's recent financ..
The accounts below appear in the ledger of popovich company : The accounts below appear in the ledger of Popovich Company. From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method.
What recommendations relative to the amount : What recommendations relative to the amount and the handling of inventory could you make to the new owners? What recommendations relative to the amount and the handling of accounts receivable could you make to the new owners? What recommendations rel..
The company classifies the investments as available for sale : Ochoa Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. The company classifies the investments as available-for-sale.
The balance sheet data of wyeth company at the end of 2010 : The balance sheet data of Wyeth Company at the end of 2010 and 2009 follow. Land was acquired for $30,000 in exchange for common stock, par $30,000, during the year; all equipment purchased was for cash.
Would this affect the validity of your conclusion : Use the year-end total to evaluate the firm’s collection system. If 70% of the firm’s sales occur between July and December, would this affect the validity of your conclusion in part a? Explain.
How would you evaluate the activity of wilkins'' inventory : Find the average quarterly inventory and use it to calculate the firm's inventory turnover and the average age of inventory. Assuming that the company is in an industry with an average inventory turnover of 2.0, how would you evaluate the activity of..

Reviews

Write a Review

Finance Basics Questions & Answers

  Data from a random sample

You are the general manager of a car-rental service at the airport. In an effort to estimate the maintenance costs you obtain the following data from a random sample of 11 cars.

  Determine the dollar price of the bond

Suppose that the Financial Management company $1,000-par-value bond had a 5.700% coupon, matured on May 15, 2017, had a current price cost of 97.708.

  Discuss the concept of investing in bonds

Discuss the concept of investing in bonds. With a definition of what kind of investment a bond is, how bonds are bought and sold, how bond prices are affected by interest rate fluctuations.

  Which you justify the importance fo marketing research in

which you justify the importance fo marketing research in the development of kudler fine foods marketing strategy and

  Prepare a financial analysis

Prepare a financial analysis report comparing 2 publicly traded corporations.

  Is the 90-day forward rate trading at a premium or discount

assume that interest rate parity holds and that 90-day risk-free securities yield 5 percent in the united states and

  Use the du pont system to calculate the return on assets

Insert the appropriate dollar amounts wherever possible. c. Use the Du Pont system to calculate the return on assets for the two years, and determine why they changed.

  What price should the company charge

If demand falls to 89,500 units and the company wants to continue to earn a 0.49 return, what price should the company charge?

  What is the tie ratio

The H.R. picket corp has 500,000 of debt outstanding, and it pays an annual interest rate of 10%. Its annual sales are 2 million, its average tax rate is 30% and its profit margin is 5%. what is the TIE ratio?

  Revenues once the motel is operational it will generate

the stayanight discount motel chain is considering a proposal to build a new motel that would have 150 rooms. revenues

  Discuss two flaws with using the irr

Please discuss the following questions. Answers need to be at minimum 150 words and include citations and references if needed. Discuss two flaws with using the IRR. Describe the concept of Relative Purchasing Power Parity.

  Suppose that lilymac photography has annual sales of 234000

suppose that lilymac photography has annual sales of 234000 cost of goods sold of 169000 average inventories of 4900

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