Revenue increase on the firms working capital policy

Assignment Help Financial Management
Reference no: EM13976757

18,109,000 total assets, 13,682000 Current Liabilities 4,427000 working capital with a 20% increase in revenue in this next year calculate and discuss the effect of the revenue increase on the firms working capital policy and provide the calculations

Reference no: EM13976757

Questions Cloud

What is the variance of these returns : Assume that for a 5-year period, large-company stocks had annual rates of return of 30.54 percent, -11.00 percent, -13.79 percent, -12.60 percent, and 38.39 percent. What is the variance of these returns?
What problems in analyzing by experiment are caused : Suppose you have a projectile that is a marble and a target. What problems in analyzing this experiment are caused by thenon-ideal collision?
What is the cost of preferred stock-aftertax cost of debt : Preston Industries has a WACC of 11.58 percent. The capital structure consists of 60.5 percent equity and 35.5 percent debt. The aftertax cost of debt is 6.0 percent and the cost of equity is 14.70 percent. What is the cost of preferred stock?
What is the pre-tax cost of debt : Marvin’s Interiors issued 9-year bonds 2 years ago. The bonds have a face value of $1,700, a 6.0 percent, semiannual coupon, and a current market price of $1,339. What is the pre-tax cost of debt?
Revenue increase on the firms working capital policy : 18,109,000 total assets, 13,682000 Current Liabilities 4,427000 working capital with a 20% increase in revenue in this next year calculate and discuss the effect of the revenue increase on the firms working capital policy and provide the calculations
What is the amount of fringe benefits : Linda and Richard are married and file a joint return for 2015. During the year, Linda, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Richard used the same amount. What is the amount of..
Committed or assigned net resources : Prepare Closing entries for year-end.Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Special Revenue Fund. Prepare a Balance Sheet, assuming there are no committed or assigned net resources.
Define personal image and define maintaining professionalism : Define personal image and discuss why maintaining professionalism while on the job and after hours are important. Give at least two examples of ways health care providers exhibit professionalism in practice.
Economy probability of state of economy stock : A portfolio consists of 20 percent Stock A, 50 percent Stock B, and 30 percent Stock C. What is the portfolio expected return given the following: State of Economy Probability of State of Economy Stock A Returns Stock B Returns Stock C Returns

Reviews

Write a Review

Financial Management Questions & Answers

  Pick the least-expensive car for your new delivery service

You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Scion xA, which will cost $17,500 to purchase and which will have OCF of –$1,900 annually throughout the vehicle’s expected life of three years as..

  Create a portfolio with an expected return

You have $258,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.3 percent, and Stock L, with an expected return of 10.9 percent.

  What is the projects expected rate of return

If a security plots below the security market line, it is: A project has an assigned beta of 1.24, the risk-free rate is 3.8%, and the market rate of return is 9.2%. What is the project's expected rate of return? A project with higher than average ri..

  Future dividends are expected to grow at a constant rate

JKE Company just paid a dividend of $2 per share. Future dividends are expected to grow at a constant rate of 8% per year. What is the value of the stock if the required return is 10%?

  Reduce pre-tax manufacturing costs

Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax manufacturing costs by $110,000 annually. Madison would use the 3-year MACRS method to depreciate the machine, and management thinks the machine would hav..

  What is the arbitrage profit from this cash-and-carry trade

Suppose you sell a forward contract at $105 and buy the underlying asset at $89. You borrow cash to buy the underlying asset, paying 10% (annual rate). The asset produces a cash flow of 2% (that is, 2% of the cash price of the underlying asset) that ..

  Which critical path activity would be the most logical

Which critical path activity would be the most logical choice for the second activity to crash?

  What are your alternatives for company is calling debentures

You own 10 Bitterroot Industries, Inc. 8 percent convertible debentures maturing in 2030. What are your alternatives for the company is calling the debentures? Which alternative should you choose?

  Coupon rate must bonds offer in order to sell at face value

General Matter’s outstanding bond issue has a coupon rate of 9.4%, and it sells at a yield to maturity of 7.80%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face..

  Formulate a zero-net-investment arbitrage portfolio

The one-year futures price on a particular stock-index portfolio is 406, the stock index currently is 400, the one-year risk-free interest rate is 3%, and the year-end dividend that will be paid on a $400 investment in the index portfolio is $5. Form..

  Calculate financial ratios-evaluating financial statement

It is often stated that anyone with a pencil can calculate financial ratios, but it takes a brain to interpret them. What kinds of things should the analyst keep in mind when evaluating the financial statements of a given firm?

  Advantages and disadvantages of this investment

Consider an investment in an international venture. Be specific with your investment (product, service, etc.). Identify the advantages and disadvantages of this investment based upon the following:

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