Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Working Capital Cash Flow Cycle
Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $200,000 (all on credit), and it earned a net profit of 5%. Its inventory turnover was 8 times during the year, and its DSO was 32 days. Its annual cost of goods sold was $121,492. The firm had fixed assets totaling $40,000. Strickler's payables deferral period is 32 days. Assume 365 days in year for your calculations. Do not round intermediate calculations.
Calculate Strickler's cash conversion cycle. Round your answer to two decimal places.
days
Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover. Round your answer to two decimal places.
x
Calculate its ROA. Round your answer to two decimal places.
%
Cede & Co. expects its EBIT to be $49,000 every year forever. The firm can borrow at 8 percent. Cede currently has no debt, its cost of equity is 11 percent, and the tax rate is 35 percent. Assume the company borrows $142,000 and uses the proceeds to..
The annual provision for bad debt is recorded as 5% of ending A/R (317,420). Use the allowance method. Round to the nearest $1. Interest has accrued at 6.5% on the long-term notes payable (1,200,000) since July 1 of this year.
The price of gold is currently $1,200 per ounce. The forward price for delivery in one year is $1,400. An arbitrageur can borrow money at 6% per annum. What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provide..
Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 25 years and a yield to maturity of 8.38 percent, compounded semi-annually. What is the current price of the bond? You paid $1171 for a corporate bo..
Essential state-of-the-art operating and information systems that support company strategies and value-creating internal processes
The Changing Cells in Excel's Solver represent the:
You purchased a zero coupon bond one year ago for $138.23. The market interest rate is now 7 percent. If the bond had 28 years to maturity when you originally purchased it, what was your total return for the past year? Assume semi-annual compounding.
Using Modigiliani and Miller’s Proposition II, determine the required return on unleveraged equity. Evaluate why violations of the Modigiliani and Miller assumptions of perfect markets require revisions to your capital budgeting analysis.
Alpha Corp. is financed 30% with debt, 10% with preferred stock, and 60% with common stock. Its pretax cost of debt is 6%, its preferred stock pays an annual dividend of 2.50 and is priced at $30. It has an equity beta of 1.1. Assume the risk-free ra..
Michael Roddick a 27-year-old bachelor Jiving in Charlottesville Virginia, has been a high-school teacher for five years. For the past four months, he's been thinking about buying a Subaru Outback, but he feels that he can’t afford a brand-new one. D..
You are planning to make annual deposits of $4,200 into retirement account that pays 10 percent interest compounded monthly.
An asset cost $10,000 and can be sold for $6,000. The book value of the asset is $4,000 and the tax rate is 35%. The net process on the sale of the asset would be:
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd