Mattel, Inc., designs, manufactures, and markets toy products worldwide. Mattel's toys includeBarbie® fashion dolls and accessories, Hot Wheels®, and Fisher-Price brands. For a recentyear, Mattel reported the following net cash flows from operating activities (in thousands):$ (53,110)First quarter ending March 31Second quarter ending June 30Third quarter ending September 30Fourth quarter ending December 31(187,663)18,435956,895Explain why Mattel reported negative net cash flows from operating activi-ties during the first and second quarters and a large positive cash flow for the fourthquarter, with overall net positive cash flow for the year.

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Answered: Mattel, Inc., designs, manufactures,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $24.5 million, cost of goods sold of $23.5 million, 50 operating weeks a year, total average on hand inventory of $2,400,000, accounts receivable equal to $2,455,000, and accounts payable of $3,775,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- v inventory weeks of supply and -Select- v accounts receivable weeks of supply or v accounts payable weeks of supply are ways to improve overall firm performance. -Select-
Find the operating cash flow for the year for Monisan and Sons if it had sales revenue of $81,200,000, cost of goods sold of $35,700,000, sales and administrative costs of $6,800,000, depreciation expense of $8,000,000, and a tax rate of 30%.
18. What is the NPV of the following cash flows? The company uses an 11% discount rate. ($168,000) $25,000 $25,000 $25,000 Initial Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow $0 $75,000 $75,000 $80,000 Year 5 Cash Flow Year 6 Cash Flow Year 7 Cash Flow $80,000 $90,000 $100,000 Year 8 Cash Flow Year 9 Cash Flow Year 10 Cash Flow A. $121,348.25 B. $146,456.34 C. $109,322.75 D. $131,942.65
Refer to Samsung’s statement of cash flows for the year ended December 31, 2017. 1. What amount (in millions of Korean won) did Samsung spend to acquire property, plant, and equipment during 2017? 2. Assume the investment in part 1 is expected to generate annual net cash flows of 7,000,000 (in millions of Korean won) per year for the next 10 years. Compute the net present value of the investment, using a discount rate of 9%.
A machine costing P8,350 yields total cash flows of P.13,100 over 5 years. The following pertains to the annual cash flows using the machine: Year Net Cash inflows 1 P1,750 2 2,250 3 2,850 4 3,000 5 3,250 Compute for the company's payback reciprocal.
Nugent Communication Corp. is investing $8,501,547 in new technologies. The company expects significant benefits in the first three years after installation (as can be seen by the following cash flows), and smaller constant benefits in each of the next four years. Year 1 2 3 4-7 Cash Flows $1,736,907 $4,841,362 $2,794,697 $1,009,125 What is the discounted payback period for the project assuming a discount rate of 10 percent?
Use the following data to answer Questions 13 through 19. (Answers may be rounded off.) Alpha Company Sales 6000 Cost of goods sold 3500 Average Inventories 620 Accounts receivable Working capital. 740 Cash 450 200 Accounts payable 550 Fixed assets 4680 Total assets 5900 Annual purchases 2300 19. Alpha's cash conversion cycle is a. 35 days b. 107 days. c. 46 days d. 16 days. I I
Compute Cash Conversion Cycle for Competing Firms Kellogg’s Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions K GIS Total revenue $14,575.0 $16,768.0 Cost of sales and services 9,849.0 10,312.9 Average accounts receivable 1,382.0 2,585.0 Average inventory 2,302.0 1,562.9 Average accounts payable 2,348.0 3,461.0 Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. a. Compute the following measures for both companies. 1. Days sales outstanding (DSO) Company DSO K Answer GIS Answer 2. Days inventory outstanding (DIO) Company DIO K Answer GIS Answer 3. Days payable outstanding (DPO) Company DPO K Answer GIS Answer 4. Cash conversion cycle (CCC) Company…
MANUAL SOLUTION AND CASH FLOW DIAGRAM !!
Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $318,600,000, cost of goods sold of $134,300,000, sales and administrative costs of $39,600,000, depreciation expense of $64,800,000, and a tax rate of 40%. The operating cash flow is $ (Round to the nearest dollar.)
In its 2017 annual report, Allen Company reports the following (in thousands): 2017 2016 Total revenue $102,500 $99,400 Property, plant, equipment, gross 41,300 38,700 Property, plant, equipment, net 16,540 14,905 Depreciation expense 1,935 1,655 If revenue growth is projected to be 5%, the 2018 forecasted depreciation expense to be added back on the statement of cash flows is: A. $1,935 thousand B. $2,147 thousand C. $1,766 thousand D. $2,065 thousand E. None of the above disregard
As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $23.6 million, cost of goods sold of $19.5 million, 50 operating weeks a year, total average on-hand inventory of $2,300,000, accounts receivable equal to $2,440,000, and accounts payable of $3,710,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- ✓inventory weeks of supply and -Select- ✓accounts receivable weeks of supply or -Select- are ways to improve overall firm performance. accounts payable weeks of supply

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