For the Bayer Company, the average age of accounts receivable is 60 days, the average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assuming a 365-day year, what is the length of of the firm's cash conversion cycle?
Q: Provide Answer with Calculation
A:
Q: Here is a forecast of sales by National Bromide for the first four months of 2022 (figures in $…
A: The cash inflow calculation include calculating credit sales and cash sale .The total sales is…
Q: Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory Conversion…
A: Cash conversion cycle indicates the period taken by a firm to convert it's products into…
Q: Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D.…
A: Sequential payment CMOs are treated as collateralized mortgage obligations, including the…
Q: Calculate the cash conversion cycle. Round your answer to the nearest whole number. days…
A: Information Provided: COGS = $144,000 (60% of sales) Inventory Turnover = 30x Accounts Receivable =…
Q: The Hedge Company has an average age of inventory of 65 days, an average collection period of 60…
A: The cash conversion cycle is calculated with the help of following formula Cash Conversion Cycle =…
Q: Your boss asks you to compute your company's cash conversion cycle. Looking at the financial…
A: Average inventory$24,800Accounts receivables averaged$18,700Accounts payables…
Q: Suppose a company had an initial investment of $40,000. The cash flow for the next five years are…
A: Discounted payback period refers to the time taken for the recovery of the initial investment after…
Q: Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D.…
A: A principal payment is a contribution made to the loan's outstanding balance. There are various…
Q: Stratosphere Wireless is examining its cash conversion cycle. The company expects its cost of goods…
A: Cash Conversion Cycle is a metric that expresses the length of time (in days) that it takes for a…
Q: Suppose that Freddie's Fries has annual sales of $620,000; cost of goods sold of $495, 000; average…
A: Approach to solving the question:Please see attached photos for the detailed solutions. Thank you.…
Q: You have recently been hired to improve the performance of Multiplex Corporation, which has been…
A: Current assets = Current inventory + Accounts receivable = $180,000 + $165,000 = $345,000 Current…
Q: what it the firm’s cash conversion cycle?
A: Cash Conversion Cycle: It is a metric used in finance that indicates the time it takes for a firm…
Q: Your company forecasts that next year's sales will be $67.00 million and the Days Sales Outstanding…
A: Days Sales Outstanding (DSO): It refers to the time taken by the company in receiving money or…
Q: A company has just sold a product with the following payment plan: $75, 000 today, $50, 000 at the…
A: Present value = Future value x PVFPVF or present value factor = 1/(1+i)^twherei = interest rate =…
Q: 2. Tortellini Inc. payables policy is being revised. It has an annual overall sales of P50,735,000,…
A: Following is the answer to the given question
Q: "You have recently been hired to improve the performance of Multiplex Corporation which has been…
A: To calculate the cash conversion cycle for Multiplex Corporation, we need to find the number of days…
Q: ntonio is an analyst at Barrilla Group. The firm turns over its inventory 5 times each year. It has…
A: Cash conversion cycle tells that how much period is required to collect money from customer and…
Q: Westerly Industries has the following financial information. What is its cash conversion cycle?…
A: The cash conversion cycle refers to the number of days required to convert the cash that is spent on…
Q: Here is a forecast of sales by National Bromide for the first four months of 2022 (figures in $…
A: The cash inflow calculation include calculating credit sales and cash sale . The total sales is…
Q: Determine the exact simple interest on P5,000 invested for the period from January 15, 1996 to…
A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…
Q: The firm PAR inc. forecasts monthly disbursements of $ 75,000 over the next year. The firm invests…
A: Data given: Monthly requirement of cash = $75,000. Fixed Transaction cost = $150…
Q: Here is a forecast of sales by National Bromide for the first four months of 2022 (figures in $…
A: The cash inflow calculation include calculating credit sales and cash sale . The total sales is…
Q: Paradise Retailers, Inc. (PRI) determined that $1,500,000 is needed for cash transactions made…
A: Baumol model is the cash management model that helps in managing the excess funds by using optimum…
Q: Zycad has sales of $110 million a year. If Zycad reduces their processing float by 3 days, what is…
A: The Average Cash balance is the amount is calculated with the help of following formula Average…
Q: a) Calculate the firm’s operating cycle. b) Calculate the firm’s cash conversion cycle c) Calculate…
A: The operating cycle of the company means the cycle in which the operating activities of the business…
Q: Here is a forecast of sales by National Bromide for the first four months of 2019 (figures in $…
A: As per the given information: Month 1 Month 2 Month 3 Month 4 Cash sales 17 26 20 16…
Q: Table 4: The Financial Determinants of Zaharah Sdn. Bhd. Cash Conversion Cycle for 2013 to 2020.…
A: Cash Conversion Cycle(CCC): When a corporation converts its investments in inventory and other…
Q: Your boss asks you to compute the company's cash conversion cycle. Looking at the financial…
A: To calculate the cash conversion cycle, we need to find the days inventory outstanding (DIO), days…
Q: Your consulting firm was recently hired to improve the performance of RP Inc, which is highly…
A: Receivable Days: Receivable Days Average Accounts Receivable / Sales = Receivable Days…
Q: The white oak company's annual sales are 219 million van average of 9 days elapses between when a…
A: GIVEN The white oak company's annual sales are 219 million van average of 9 days elapses between…
Q: You have recently been hired to improve the performance of Multiplex Corporation, which has been…
A: Here,Current inventory $241,000.00Annual sales $1,200,000.00Accounts receivable$300,000.00Accounts…
Q: Dreamz Unlimited INC has accounts payable days of 30 , inventory days of 60 , and accounts…
A: Accounts payable days = 30 daysInventory days = 60 daysAccounts receivable days = 35 daysThe Cash…
Q: Suppose that Freddie's Fries has annual sales of $620,000; cost of goods sold of $495, 000; average…
A: Cash Conversion Cycle (CCC) is the average time it takes a company to convert its cash outflow for…
Q: nmoo Company's average age of accounts receivable is 89 days, the average age of accounts payable is…
A: The cash conversion cycle (CCC) is a financial metric that measures the time it takes for a company…
Q: a company could raise f
A:
Q: Your company forecasts that next year's sales will be $78.00 million and the Days Sales Outstanding…
A: The objective of the question is to calculate the forecasted accounts receivable for next year based…
Q: Edwards Industries has $320 million in sales. The companyexpects that its sales will increase 12%…
A: Sales Forecast: Sales forecast is the important point that arises while making the future plans. The…
Q: A financial analyst draws a cash flow diagram to model the following scenario. A 90-day commercial…
A: Note: 365 days convention is used in the calculation for accurate answers Here, Initial cash outflow…
Q: Cast of Cash sales Sales on credit Month 1 16 110 Month 2 Month 3 Month 4 25 130 19 100 15 80 On…
A: When cash sales are made , Cash inflows arise immediately. However , whenever credit sales are made…
Q: Hardrock Hardware PLC estimate a cash of $2 500 000 over the next five months. This amount is…
A: As per the guidelines, the answer to the first four parts is given below. To obtain answers for the…
Q: Stratosphere Wireless is examining its cash conversion cycle. The company expects its cost of goods…
A: Information Provided:COGS = $144,000 (60% of sales)Inventory Turnover = 30xAccounts Receivable =…
Q: Structural liquidity statement, per bucket 8-14 29 days- 15-28 days Time bucket 1 day 2-7 days days…
A: Gap analysis measures mismatches between rate sensitive liabilities (RSLs) and rate sensitive assets…
Step by step
Solved in 2 steps with 1 images
- A business plans to use £20,000 of cash during the forthcoming year. It holds most of its cash in a deposit account from which it costs £30 to make each withdrawal and which pays interest at 10 per cent p.a. What is the optimal size for each withdrawal?Determine Hopewell's cash conversion cycle. Assume that there are 365 days per year. Do not round intermediate calculations. Round your answer to one decimal place. daysCalculate the following from the information given Fego Ltd:1. Payback Period (expressed in years, months and days).2. Accounting Rate of Return on initial investment (expressed to two decimal places).3. Internal Rate of Return (expressed to two decimal places) if the net cash inflows are R400 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation.
- The following table shows CLV for A company. What is the CLV of the first year (please round it up)? Profit per Annual Customer Annual Year CustomerRetention Accounts Discount Discount ($) Probability RemainingRate 0 1 50 2 70 3 ↑ 75 41 42 43 44 45 90% 87% 85% 100 90 78.3 66.5 0.1 0.1 Cumulative Discounted Cash Flow ($)0 0.1 Factor 0.91 0.83 0.75Question. Semis Inc. has an average age of inventory of 70 days, an average collection period of 60 days and an average payment period of 60 days. The firm's total annual outlays for operating cycle investments are $3.65 million. Assuming a 365-day year, how much financing is required to support its cash conversion cycle?Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's accounts receivable. Make the following assumptions: current year's sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to rise by 25%, The firm's investment in accounts receivable in the current year is $12,600,000. The firm's marginal tax rate is 35%. What is the projection for next year's accounts receivable? $10,320,000 $11,345,000 O $15,750,000 $8,772,000
- The company has sales of $ 10 million per year, all of which are from credit terms that require payment to be made within 30 days, and the company's account receivables amount to $ 2 million. What is the DSO of the company, what is the value if all borrowers pay on time, and how much capital will be released if the company takes actions that lead to timely payment?Parramore Corp has $10 million of sales, $2 million of inventories, $4 million of receivables, and $3 million of payables. Its cost of goods sold is 75% of sales, and it finances working capital with bank loans at a 7% rate. Assume 365 days in year for your calculations. A. What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places. days B. If Parramore could lower its inventories and receivables by 12% each and increase its payables by 12%, all without affecting sales or cost of goods sold, what would be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places. days C. How much cash would be freed up, if Parramore could lower its inventories and receivables by 12% each and increase its payables by 12%, all without affecting sales or cost of goods sold? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate…Why is it important for start-up businesses to come up with monthly cash flow projections, especially during first year?
- Calculate the 2019 cash conversion cycle for Buy-Right. Assume that Buy-Right decided to improve it's cash conversion cycle by decreasing it's inventory conversion days to 60. The company also outsourced the collection of its accounts receivable book to an independent 3rd party, which resulted in an a new collection period of 30 days. Calculate the ZAR effect of the net cash flow to the company. Assume that sales for 2020 is expected to grow at Just over 20% to reach R1580m. Assuming that the cash conversion cycle remains constant for 2020, would Buy-right have sufficient working capital to fund the envisaged sales for 2020?If average daily remittances are $1 million, and extended disbursement float adds 12 days to the disbursement schedule, how much should the firm be willing to pay for a cash management system if the firm earns 15% on excess funds?