Assume that sales are not affected by the tighter credit

Assignment Help Financial Management

Reference no: EM131013386

Weir Incorporated has sales of $200,000 and accounts receivable of $18,500. You can easily show that its DSO is well over the industry average of 27 days. Suppose that it speeds up collection, matches the industry average, and manages to earn 8% interest on the cash not tied up in receivables. What would be the savings per year? Assume that sales are not affected by the tighter credit.

$241.45 $254.16 $267.54 $281.62 $296.44

Reference no: EM131013386

Questions Cloud

Measured by the dow jones industrial average : The United States Stock Market is virtually at the same position today it was 10 years ago. There has been no sustained growth in the market, as measured by the Dow Jones Industrial Average (DJIA), since January 2000. Please discuss the signs that yo..

Calculate total delta-v required and sketch the projection : At that instant, the spacecraft executes a delta-v burn to rendezvous with the space station in (precisely) tf hours, where tf is either selected by you or assigned by the instructor. Calculate the total delta-v required and sketch the projection ..

Spartan corporation redeemed 25 percent of its shares : Spartan Corporation redeemed 25 percent of its shares for $3,300 on July 1 of this year, in a transaction that qualified as an exchange under §302(a).

How much greater would be the return on equity : Acme Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Although it had net income of $10,600 on $295,000 of sales, a private equity firm thinks it could have had a net income $10,250 greater just by cutting costs. If this is p..

Assume that sales are not affected by the tighter credit : Weir Incorporated has sales of $200,000 and accounts receivable of $18,500. You can easily show that its DSO is well over the industry average of 27 days. Suppose that it speeds up collection, matches the industry average, and manages to earn 8% inte..

What is the present value at discount of a cash flow : What is the present value at 6% discount of a cash flow at t = 1 of $1,000 followed by three more consecutive cash flows of $2,000 (at t = 2, 3, and 4). Hint: First draw a time diagram, then use the formula for PV of an annuity followed by a single d..

Discuss interviewing a victim of elderly abuse : Discuss the difference between a nursing home and an assisted-living facility as it relates to an investigation. Then discuss interviewing a victim of elderly abuse

Probably affect a firms target cash balance : Explain how each of the following factors would probably affect a firm’s target cash balance if all other factors were held constant.

Find the total delta-v for this maneuver : A GEO satellite strikes some orbiting debris and is found 2 h afterward to have drifted to the position dr ¼ -10^i þ 10^j ðkmÞ relative to its original location. At that time, the only slightly damaged satellite initiates a two-impulse maneuver ..

User Account

All Pages