Highlight T StrikethroughCalculatorScratch PadZorg Co is a specialist tool manufacturer and has experienced high growth in the pastfew years. Last year's growth in sales volume of 20% is expected to continue into thenext year.Extracts from Zorg Co's latest financial statements for the year just ended areas follows:$m21.2RevenueCost of sales18.3Current assets:Inventory2.4Trade receivables2.9Current liabilities:Bank overdraft0.32.0Trade payablesThe majority of Zorg Co's inventory is work in progress as most of its production ismade to customer order and minimal levels of raw materials are held.Credit purchases from its trade suppliers totalled $16m for the year just ended and onaverage it pays its suppliers after 45 days, rather than 30 days which is the creditterms offered by the suppliers. Purchases and inventory levels grow in line with salesvolume.Zorg Co is forecasting its working capital requirements for the next year and thefollowing changes are expected:(1) Customers are currently taking 50 days on average to pay but Zorg Co isimplement plans over the next year to reduce this by 10 days(2) Zorg Co is being forced by its suppliers to pay according to their terms which willresult in Zorg Co's average payable days being reduced to 30 days(3) The bank overdraft is forecast to increase by $0.9m by the end of the next yearNote: Assume 365 days a year in all calculations.CIWhat is the forecast cash operating cycle for next year (to the nearest day)?days

Working Capital: It is the capital which required by every organization to its routine operational…

anufacturer and has experienced high growth in the past in sales volume of 20% is expected to continue into the financial statements for the year just ended are What is the forecast cash operating cycle for next year (to the nearest day days

anufacturer and has experienced high growth in the past in sales volume of 20% is expected to continue into the financial statements for the year just ended are What is the forecast cash operating cycle for next year (to the nearest day days

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A financial instrument provides three future cash flows: 1. $1,406.01 at the end of 2 years 2. $2,596.43 at the end of 8 years 3. $1,172.62 at the end of 13 years Calculate the duration (D) of the financial instrument at a yield of 7% pa compounded yearly. Give your answer in years to 2 decimal places. D years
Suppose that a company borrows $100,000 from investment pool at 14% compounded quarterly over 3 years. If the average quarterly general inflation rate is expected to be 0.35%, determine the equivalent equal quarterly payment series in constant dollars.
1. At the end of each quarter for the next 12 years you will receive a cashflow of $5200. If the APR is 7.25% compounded quarterly, then what is the value today? $165,760 $112,897 $156,783 $105,781
Assume that $105.04 invested today will grow to $2,639.23 at the end of 38 quarters. Given this info, determine the effective annual interest rate being earned on this investment.
what will be the balance of an investment after a period of 9 years assuming an initial deposit of $2300, annual investment returns of 4.0% during the first 5 years, followed by annual returns of 3.1% for the remainder of the period? Consider no additional annual withdrawals or deposits during the period
An investment group faces following GAP figures and rate sensitives. Time GAP Cumulative gap 0-3 months -140 -120 3-6 months +60 -94 6-12 months +1725 +1494 Interest rate rose by 200 basic points (2%) at the begining of first time bucket(0-3 months) and remained there for the next year. Estimate the effect on net interest revenue for the coming 1 year period. Repricing occurs at the start of each period.
What principal deposited 3 years ago will grow to $40,463.09 in 2 years and 8 months from now if money grows at 2.34% compounded semi-annually? i need present vlaue and N for this.
A series of cash flows begins at $12,675 the first year, with an increase each year until n=10. If the interest rate is 12.675%, what is the present value when the annual increase is $1,268?
determine the market value of 6 million of long-term debt, the parameters are that for 14 years, payments of 300,000 (5% of 6 million)will be made, concluding with a 15th year of payment of 6,300,000 (interest and principle) and that 12% is representative interest rate. what is the present value of the cash flows?