A firm has the following accounts; current liabilities = $30,000,000, sales = $245,000,000. The firm has the following ratios;current ratio = 1.76 times, inventory turnover ratio = 15.5 times, average collection period = 45 days. What is the value of thefirm's cash?O $52,800,000$6,788,069O $9,378,078O $31,549,104

Here,CurrentRatio is 1.76 timesInventory Turnover Period is 15.5 timesAverage Collection Period is…

Answered: A firm has the following accounts;…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

With an initial cost of $100,000, a WACC of 15%, and subsequent cash flows for years 1, 2, 3 of $25,000, $50,000, $75,000, in how many years will break even occur? Use non-discounted cash flows for your calculation. Use the information above and calculate the discounted payback period what is the project’s NPV?
Aila Company has cash sales of P2,500,000 and net sales of P3,450,000, total assets of P1,240,000 and total liabilities of P275,000 representing notes payable. The firm’s operating margin is 16.1%, and it pays a 10% rate of interest on its notes payable. How much is the firm’s times-interest earned?
The Brenmar Sales Company had a gross profit margin (gross profits÷sales) of 34 percent and sales of $9.2 million last year. 73 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.2 million, its current liabilities equal $300,700, and it has $109,000 in cash plus marketable securities. a. If Brenmar's accounts receivable equal $562,900, what is its average collection period? b. If Brenmar reduces its average collection period to 25 days, what will be its new level of accounts receivable? c. Brenmar's inventory turnover ratio is 9.3 times. What is the level of Brenmar's inventories?
Problem 1: A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in account receivables. The firm has long term assets of $500. The firm has accounts payables of $200. All other current liabilities total $400. The firm had sales of $10000, EBIT of $5000, interest expenses of $2000 and net income of $800. Compute the following ratios: Current ratio DSO TIE profit margin Total asset turnover Problem 2: A firm has current liabilities of $500. Account receivables are $300 and inventory is $400. All other current assets equal $800. Long term assets are $5000, long term liabities are $2500, sales is $8000, EBIT is $2000, interest expenses are $600 and net income is $100. Compute the following ratios: Current ratio Debt ratio TIE ROA DSO Current ratio = total current assets/total current liabilities Days Sales Outstanding (DSO) = (accounts receivable*365)/sales Times Interest Earned (TIE) ratio = EBIT/interest expense Total asset turnover = sales/total…
Zane Corporation has an inventory conversion period of 79 days, an average collection period of 43 days, and a payables deferral period of 50 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places. days If Zane's annual sales are $3,598,365 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest cent. $ How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio. Do not round intermediate calculations. Round your answer to two decimal places. times
A firm has sales of $10,000, A/R of $1,200, Inventory of $2,000 and A/P of $1,400. What is the Cash Cycle for this firm in days?
Suppose that Freddie's Fries has annual sales of $620,000; cost of goods sold of $495, 000; average inventories of $21,000; average accounts receivable of $37,000, and an average accounts payable balance of $32, 000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.) a. 37.26. b. 60.86. c. 1.82. d. 13.66.
Inmoo Company's average age of accounts receivable is 89 days, the average age of accounts payable is 40 days, and the average age of inventory is 48 days. Assuming a 365-day year, what is the length of its cash conversion cycle? Please explain process and show calculations.
The balance sheet for Revolution Clothiers is shown below. Sales for the year were $3,490,000, with 75 percent of sales sold on credit. Assets Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION CLOTHIERS Balance Sheet 20X1 a. Current ratio b. Quick ratio c. Debt-to-total-assets ratio d. Asset turnover e. Average collection period $ 38,000 Accounts payable Accrued taxes 292,000 248,000 500,000 $ 1,078,000 Bonds payable (long-term) Common stock Paid-in capital Retained earnings Total liabilities and equity Liabilities and Equity times times % Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to- total assets answer as a percent rounded to 2 decimal places. times days $ 262,000 148,000 178,000 100,000 150,000 240,000 $ 1,078,000
Zumbahlen Inc. has the following balance sheet information. How much total operating capital does the firm have? Cash $30.00 Accounts payable $40.00 Short-term investments 60 Accruals 64 Accounts receivable 25 Notes payable 45 Inventory 91 Gross fixed assets $200.00 Accumulated deprec. 50 Round your answer to the nearest whole number.
A company has the following balance sheet. What is its total net operating capital? (Round it to a whole dollar, if necessary) Cash $ 20 Accounts payable $ 60 Short-term investments 30 Accruals 50 Accounts receivable 50 Notes payable 10 Inventory 80 Current liabilities xxx Current assets xxx Long-term debt 70 Net fixed assets 100 Common equity 30 Retained earnings xx Total assets $xxx Total liab. & equity $xx
2. Inventory is P15,000; Accounts Payable is P45,000. Cash and accounts receivable total P8,000. What is the current ratio? What is the quick ratio? 3. If current ratio is 1.5, what is the total accounts receivable if cash is P220,000, inventory is P75,000, and accounts payable is P330,000? 4. Cash is 30% of total current assets. If current ratio is 2.5, what is the new current ratio if total noncash current assets grow by 50%? 5. The total asset is P1,500,000. Sales is P4,500,000. What is the asset turnover?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS