what is the length of the firm cash conversion cycle ? accounting For the Greenfield Manufacturing Company, the average age ofaccounts receivable is 50 days, the average age of accountspayable is 30 days, and the average age of inventory is 80days. Assuming a 365-day year, what is the length of the firm'scash conversion cycle?Options:a. 90 daysb. 100 daysc. 80 daysd. 75 dayse. 85 days

Step 1: Definition of Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) is a measure of the…

Answered: For the Greenfield Manufacturing…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10QTD

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A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 a) Calculate decimal. Please present answer to nearest half a month.
Altai, Inc has a cash conversion cycle of 175 days. The company is able to stretch its average payment period to 45 days from 30 days. The result is a/an_________ of ____ days in the cash conversion cycle.
Note: The rate of interest on Epona's overdraft is 10 per cent per annum. Required: a. Calculate four ratios for each company showing profitability and five showing liquidity. (Use 365 days a year. Round your trade receivable days and credit period ratio answers to 1 decimal place, and all other answers to 2 decimal places.) find profit before interest and tax, return on capital employed (before interest and tax), capital turnover and credit period ratio.
Consider a firm with a contract to sell an asset for $154,000 five years from now. The asset costs $90,000 to produce today. a. Given a relevant discount rate of 13 percent per year, calculate the profit the firm will make on this asset. (A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At what rate does the firm just break even? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Firm's profit (loss) b. Break-even rate %
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B. Kings Company presents the following information: 1. Annual credit sales: P 25,200,000 2. Collection period: 3 months 3. Rate of return: 12% Kings company considers changing its credit term from n/30 to 3/10, 1/30. The following are expected to result: (1) 30% of its customers will take advantage of the discount; (2) sales will remain constant; and (3) the collection period is expected to decrease to two months Should the company implement the proposed discount policy? Why?
Assume the average management cost per account per year is $200 and the average fees earned per account per year is $170. The average annual size of account is $1800. What is the average implicit interest rate (round to two decimals)? Select one: a. 4.86% b. 1.67% c. 15% d. -1.67%
You plan to invest in an account which pays 3.5% compounded continuously. If the investment period is for 12 years, then A(P) = P e 0.035 · 12 = P e 0.42 gives the total balance of P dollars. Find a formula for A'(P). Find and interpret A'(4000). Compare the approximation to the actual change. a. b. С. a. A'(P) =| (Type an exact answer in terms of e.) b. A'(4000) = %3D (Round to the nearest cent as needed.) Interpret A'(4000) = 1.52 O A. The future value of a 13 year investment of $4001 will be $ more than the future value of a 13 year investment of $4000. O B. The future value of a 13 year investment of $4000 will be $ more than the future value of a 13 year investment of $4000. O C. The future value of 12 year investment of $4000 at 4.5% will be $ more than the future value of a 12 year investment of $4000 at 3.5%. O D. The future value of a 12 year investment of $4001 will be $ more than the future value of a 12 year investment of $4000. c. A(4001) – A(4000) = dollars per year.…
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Suppose that the current price of oil is $ 90 per bbl. Suppose it costs $ 0.5 per bbl per month to store oil (payable monthly in advance). Suppose also that the term structure is flat with a continuously compounded rate of interest of 3 % for all maturities. Calculate the forward price of oil for delivery in 3 months.
consider account APR of 4.6% find APY and daily compounding. Comment on how changing the compounding period affects the annual yield. Question content area bottom Part 1 When interest is compounded quarterly, the APY is enter your response here%. (Do not round until the final answer. Then round to two decimal places as needed.)

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