User Account

All Pages

What would be the increase in the firm’s average balance

Assignment Help Finance Basics
Reference no: EM131120310

Dexter Instrument Company’s sales average $3 million per day.

a. If Dexter could reduce the time between customers’ mailing their payments and the funds becoming collected balances by 2.5 days, what would be the increase in the firm’s average cash balance?

b. Assuming that these additional funds can be invested in marketable securities to yield 8.5 percent per annum, determine the annual increase in Dexter’s (pretax) earnings.

Reference no: EM131120310

Questions Cloud

Determine the increase in the firm’s average cash balance : Exman Company performed a study of its billing and collection procedures and found that an average of 8 days elapses between the time when a customer’s payment is received and when the funds become usable by the firm. The firm’s annual sales are $540..
Assuming that the company uses the straight line method : Why is depreciation for tax purposes different from depreciation for book purposes even if the company uses the same depreciation method to compute them both?
Explain why depreciation for book and tax purposes : Determine the total depreciation to be taken over the useful life of the delivery truck for both book and tax purposes.
What would be the increase in the firm’s average balance : Dexter Instrument Company’s sales average $3 million per day. If Dexter could reduce the time between customers’ mailing their payments and the funds becoming collected balances by 2.5 days, what would be the increase in the firm’s average cash balan..
How can the asset turnover ratio be used to compute : How can the asset turnover ratio be used to compute the rate of return on assets?
What measures can the board of directors of a corporation : What measures can the board of directors of a corporation take to discourage unethical (and illegal) behavior, such as the mail and wire fraud by E. F. Hutton managers described in the chapter?
What is multilateral netting : What is multilateral netting? Give an example of how this would work for a multinational firm.
The amount that is charged as an expense for 2010 : The amount that is charged as an expense for 2010 for the cost of the minerals sold during 2010.

Reviews

Write a Review

Finance Basics Questions & Answers

  Williams company purchased a machine costing

Williams Company purchased a machine costing $44,800 and is depreciating it over a 10-year estimated useful life with a residual value of $4,800. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $9,800, and the t..

  A risk-free zero-coupon bond has 15 years to maturity which

1. sultan services has 1.2 million shares outstanding. it expects earnings at the end of the year of 5.6 million.

  Crypton electronics has a capital structure consisting of

1.crypton electronics has a capital structure consisting of 43 common stock and 57 debt. a debt issue of 1000 par value

  Assigned company''s financial statements

Calculate the financial ratios for the assigned company's financial statements, and then interpret those results against company historical data as well as industry benchmarks:

  Maintenance of the whole

"Society is like an organism, the parts work in harmony to contribute to the maintenance of the whole. A healthy society is one that's public." These statements are consistent with which sociological perspective?

  Multiple choice questions on cash flow method and sources

multiple choice questions on cash flow method and sources of external capital.1.nbspwhat does the free cash flow method

  Construct hospitals base case projected p&l statement

Corporation, a not-for-profit acute care facility has this cost structure for its inpatient services: The hospital expects to have a patient load of 15,000 inpatient days next year.

  Develop a proposal that includes a financial breakdown

You need to develop a proposal that includes a financial breakdown of startup costs and projected income and expenses for five years

  There are three types of short-term bank loansnbsp explain

there are three types of short-term bank loans.nbsp explain how each is used by people or businesses. do not cut and

  What is value of the shareholders equity account for firm

Building a Balance Sheet: Bishop, Inc., has current assets of $5,700, net fixed assets of $27,000, current liabilities of $4,400, and long-term debt of $12,900. What is the value of the shareholders' equity account for this firm? How much is net w..

  In addition senior management requested meaningful

the genesis operations management team nearing completion of its agreement with sensible essentials was asked by senior

  Current price of a non-dividend-paying

The current price of a non-dividend-paying biotech stock is $140 with a volatility of 25%. The risk-free rate is 4%. For a three-month time step:

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