Increase in accounts receivable and decrease in inventory

Assignment Help Financial Management
Reference no: EM131049655

Define each of the following as a SOURCE or USE of cash?

Increase in Accounts Receivable:

Decrease in Notes Payable: 

Decrease in Inventory:

Increase in Accounts Payable:

Granting credit to a customer:

Increase in Common Stock:

Reference no: EM131049655

Questions Cloud

What is the effective annual interest rate per month : This is a situation involving two friends. One borrows from the other $500, agreeing to pay back the loan principal plus $75 interest one month later. One year went buy and he did not pay back the loan. What is the effective annual interest rate per ..
Time-value-of-money : Time-Value-of-Money Question: A company plans to purchase an item at a cost of $260,000 with a service life of 8 years. At the end of the 8th year, the item has a salvage value of $40,000. Considering an interest rate of 7% per year, what would the a..
When would short-selling costs bite in this case : Suppose that there are no dividends paid by Google and the interest rate for borrowing or lending is 5% per annum. How could you make money if the June and December futures contracts for a particular year trade at $530 and $550, respectively? When wo..
Bonds make semiannual payments-what is current bond price : App Store Co. issued 15-year bonds one year ago at a coupon rate of 6.6 percent. The bonds make semiannual payments. Required: If the YTM on these bonds is 5.5 percent, what is the current bond price?
Increase in accounts receivable and decrease in inventory : Define each of the following as a SOURCE or USE of cash? Increase in Accounts Receivable: Decrease in Notes Payable: Decrease in Inventory: Increase in Accounts Payable: Granting credit to a customer: Increase in Common Stock:
How much value to the unlevered firm per dollar of debt : Given the following information, leverage will add how much value to the unlevered firm per dollar of debt? Corporate tax rate: 34%
The cost of equity for an all equity firm : The Lanoi Company has EBIT of $30,000 and market value debt of $150,000 outstanding with an 8% coupon rate. The cost of equity for an all equity firm would be 12%. Aggie has a 30% corporate tax rate. Investors face a 20% tax rate on debt receipts and..
Distributors has an unlevered cost of capital : Johnson Tire Distributors has an unlevered cost of capital of 12 percent, a tax rate of 33 percent, and expected earnings before interest and taxes of $1,400. The company has $2,500 in bonds outstanding that have a 6 percent coupon and pay interest a..
Overseen the use of the lot for daily commuter parking : Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised at $810,000. At the time of the purchase, the company spent $50,000 to grade the lot and another $4,000 to build a small buildi..

Reviews

Write a Review

Financial Management Questions & Answers

  Spot and six-month forward rates on the norwegian krone

Suppose the spot and six-month forward rates on the Norwegian krone are Kr6.36 and Kr6.56, respectively. The annual risk-free rate in the United States is 4.5 percent, and the annual risk-free rate in Norway is 7 percent. What would the six-month for..

  Computers to network than any other program designed

You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into their systems and is offering to pay you $485,0..

  What is the value of the fund today

Your brother, who is 6 years old, just received a trust fund that will be worth $24,000 when he is 21 years old. If the fund earns 0.10 interest compounded annually, what is the value of the fund today?

  Analysis of annual distribution policy-impact on firm value

Melanee is a financial analyst in Bidget Corp. As part of her analysis of the annual distribution policy and its impact on the firm’s value, she makes the following calculations and observations: The company generated a free cash flow of $120 million..

  Discount is less costly than a short-term loan

Cash discount versus loan. Joanne Germano works in an accounts payable department of a major retailer. She has to convince her boss to take the discount on the 1/15 net 65 credit terms most suppliers offer, but her boss argues that giving up the 1% d..

  What is its sustainable growth rate

Rocky Sales, Inc., has current sales of $1,268,864 and net income of $203,018. It also has a debt ratio of 47 percent and a dividend payout ratio of 69 percent. The company’s total assets are $587,439. What is its sustainable growth rate? (Round answ..

  Calculate variances and standard deviations

The rate of return on Cherry Jalopies, Inc., stock over the last five years was 23 percent, 11 percent, -5 percent, 7 percent, and 10 percent. Over the same period, the return on Straw Construction Company’s stock was 16 percent, 24 percent, -6 perce..

  Company will also pay out a liquidating dividend

JJ Industries will pay a regular dividend of $3.20 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 9 percent, and the current share price is $85, what ..

  Annuity pays-what is the present value of the annuity

A 10-year annuity pays $2,900 per month, and payments are made at the end of each month. The interest rate is 8 percent compounded monthly for the first six years, and 6 percent compounded monthly thereafter. What is the present value of the annuity?

  What is the expected year-end dividend

Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1?

  What is the value of your retirement plan

Assume that you contribute $310 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $620 per month for another 25 years. Given a 8 percent interest rate, what is the value of your retirement plan after the 5..

  What’s the bonds current yield-bonds value change

Assume that the company that you selected for the Module 1 SLP has a bond outstanding that matures in 20 years and has a coupon rate of 6.5%. The par value of the bond is $1,000. A bond matures in ten years and is currently selling for $1,125. The bo..

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