Estimate the average length of the firms short-term

Assignment Help Finance Basics
Reference no: EM13567417

Pretty Lady Cosmetic Products has an average production process time of forty days. Finished goods are kept on hand for an average of fifteen days before they are sold. Accounts receivable are outstanding an average of thirty-five days, and the firm receives forty days of credit on its purchases from suppliers.

a. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?

b. Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable inventories, and accounts payable. What would be the net financing need considering only these three accounts?

Reference no: EM13567417

Questions Cloud

Write a three to four 3-4 page paper on the relationship : political parties and the electoral processwrite a three to four 3-4 page paper on the relationship between political
Laudermilk produces dairy equipment most of its jobs have a : laudermilk produces dairy equipment. most of its jobs have a number of units per job. the company has two different
The marketing manager thinks that if x company accepts the : at the end of the year a company offered to buy 4420 regular units from x company for a special price of 12.77 each.
Wrights construction builds custom houses for individual : wrights construction builds custom houses for individual buyers. on june 1 it had one job started with a beginning
Estimate the average length of the firms short-term : pretty lady cosmetic products has an average production process time of forty days. finished goods are kept on hand
Creamy custard common stock is currently selling for 7900 : creamy custard common stock is currently selling for 79.00. it just paid a dividend of 4.60 and dividends are expected
Alden companys monthly sales and cost data for its : alden companys monthly sales and cost data for its operating activities of the past year follow. management wants to
Oct 1 began business by making a deposit in a company bank : below are the transactions for october. i need to create a journal entry general ledger and trial balance. i understand
Metal fabricators just issued 1000 par 20-year bonds the : metal fabricators just issued 1000 par 20-year bonds. the bonds sold for 758.18 and pay interest semi-annually.

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the projected incremental cash flow

Nickel Corporation is planning the purchase of a new machine that will cost $178,000, plus an additional $12,000 to ship and install.

  The balance sheet and income statement for chico

the balance sheet and income statement for chico electronics are reproduced below tax rate is 40.chico

  Which one of the following accurately defines a perpetuity

Which one of the following accurately defines a perpetuity?

  Objective type questions based on cost of capital

Objective type questions based on cost of capital and portfolio management and what is the expected price of the stock seven years from now

  The end result of this course is developing the strategic

the end result of this course is developing a strategic audit. in this module you will outline and draft a preliminary

  What is the intrinsic value of the stock

Stockholders require a return of 12% on WM's stock. The most recent annual dividend (D0) which was paid yesterday was $1.75 per share.

  Your response should be at least 250 words in length you

identify sources of risk and contrast them include examples and explain why investors should be concerned with themyour

  Evaluate how many shares will be repurchased

Evaluate how many shares will be repurchased and what is the value of equity after the repurchase has been completed? What is the price per share?

  What is the firms profit margin

A firm has sales of $211,000, depreciation of $24,600, interest expense of $560, COGS of $148,900, other cost of $6,500, and tax rate of 35%. What is the firm's profit margin?

  Describing foreign exchange

Recognize foreign exchange rate data and discuss its impact on your investment decision.

  Find the average collection period for a year

Find the average collection period for a year that is not on the balance sheet? I have the credit sales total, and days Ina period, but I am having troubles figuring out the average amount of accounts receivables for the year I have to solve for...

  Determine positive npv

Suppose you are planning making a movie. The movie is expected to cost $10 million upfront and take a year to make. After that, it is expected to make $5 million in the year it is released and $2 million for the following four years.

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