Minimize the negative cash flow

Assignment Help Finance Basics
Reference no: EM1355962

Congratulations! Your small company was just awarded a lucrative contract to provide hundreds of widgets to the US Government. If you perform well, you'll be on "easy street" with all the follow-on business. It will take you 6 months to produce and deliver the units. The US Government will not provide up front payments (payments prior to delivery) and, is notoriously late on paying "net 30" invoices.

a. What can you do to minimize the negative cash flow of this deal?

b. How are you going to keep your company afloat until you get paid?

 

Reference no: EM1355962

Questions Cloud

Depreciation and payroll journal : Illustrate the effect on the account and financial statements of paying and recording the March 17th payroll. Determine the following amounts of the employer payroll taxes related to the March 17th payroll: a) FICA tax payable b)state unemployment t..
Benefits of using diagnostic labels : What are the benefits of using diagnostic labels to identify and describe abnormal behavior? What are the risks of using diagnostic labels to identify and describe abnormal behavior?
Describe some ways for the firsthand knowledge : Describe some ways in which the firsthand knowledge we have of some topic goes beyond what we are able to write down in a language. What accounts for our inability to express this knowledge?
Illustrate what happens to equilibrium price and quantity : Illustrate what happens to the equilibrium price and quantity in each market. Which product experiences a larger change in price.
Minimize the negative cash flow : Suppose your small company was just awarded a lucrative contract to provide hundreds of widgets to the US Government. If you perform well, you'll be on "easy street" with all the follow-on business.
Burns company-journal entries : Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. Show the year-end balance sheet presentation for accounts receivable.
Installment sales method of accounting : Neber Corporation, which start operations on January 1, 2007, appropriately uses the installment-sales method of accounting. The following data pertains to Neber's operations for the year 2007:
Explain each employee qualifies to earn overtime : Explain Each employee qualifies to earn overtime at a rate of 1.5 of his or her hourly rate for every hour greater than 40 hours.
Concept of abnormality : Another problem related to the concept of abnormality is its use in personality inventories. Most personality inventories refer to what is abnormal based on what is considered maladaptive behavior.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Exchange rates and forward contracts

Assume you issued a 90-day forward contract to exchange 100,000 New Zealand dollars into U.S. dollars. How many U.S. dollars are involved?

  Compute of after-tax profit

Compute of after-tax profit and The corporate tax rate is 40%. If the economy is strong the firm will sell 2,000,000 gadgets

  Computation of price of the bond

Computation of price of the bond and what price should the existing bond be traded at when the new five-year bond issued

  Amount of funds-lockbox arrangement

J-Mart, the nationwide department store chain, processes all its credit sales payments at its suburban Detroit headquarters.

  Calculation of monthly payments

Calculation of Monthly Payments and Outstanding Loan Balance and Principal paid under Amortizing-Mortgage Contract

  Calculation of a proposal to buy a new milling machine

Calculation of a proposal to buy a new milling machine using NPV and What is the net cost of the machine for capital budgeting purposes

  Describe what profit or loss would the investment banker

Describe what profit or loss would the investment banker incur if the issue were sold to the public at an average price of $25 per share?

  Postive and negative rights discussed

Fully describe the difference between positive and negative rights, giving three examples other than those found in the text for each (the examples given in the book are: privacy, the rights to food, life, and health care).

  Explain the market value of the firm

Explain the market value of the firm and What is the market value of the resulting levered firm L

  Interest rates and capital markets

Assume you are the manager in a manufacturing business. How are the capital markets relevant to effective performance of your job?

  Computation of the financial performance of the company

Computation of the financial performance of the company with the help of the ratios and industry average

  Evaluate the required return for an asset

Evaluate the required return for an asset with a beta of .90 when the risk-free rate and market return are 6% and 10% respectively and fine the risk-free rate for a firm with a required return of 12% and a beta of 1.25

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