Average does it take the firm to sell its inventory

Assignment Help Financial Management
Reference no: EM13812292

North Side Wholesalers has sales of $948,000. The cost of goods sold is equal to 72 percent of sales. The firm has an average inventory of $23,000. How many days on average does it take the firm to sell its inventory?

Reference no: EM13812292

Questions Cloud

Capital structure-weighted average cost of capital : What is the Acme Company’s weighted average cost of capital if its cost of before-tax debt is 8% (20% of overall capital structure), its cost of preferred stock is 9.5% (20% of capital structure) and is cost of internal equity is 15.5% (60% of the ca..
How might managed earning threaten the credibility : How might managed earning threaten the credibility of the U.S. financial reporting system? If it is harmful should be get rid of managed earning? Why is it important to manage earnings?
What is the length of the cash cycle : BCD Corporation has an inventory turnover of 16 and an accounts payable turnover of 11. The accounts receivable period is 36 days. What is the length of the cash cycle?
What will the firms new operating cycle be : Happy Enterprises currently has an operating cycle of 62 days. The firm is analyzing some operational changes, which are expected to increase the accounts receivable period by 2 days and decrease the inventory period by 5 days. The accounts payable t..
Average does it take the firm to sell its inventory : North Side Wholesalers has sales of $948,000. The cost of goods sold is equal to 72 percent of sales. The firm has an average inventory of $23,000. How many days on average does it take the firm to sell its inventory?
Produces positive after-tax cash inflows : Johnson Jets is considering two mutually exclusive projects. Project A has an up-front cost of $122,000 (CF0 = -122,000), and produces positive after-tax cash inflows of $30,000 a year at the end of each of the next six years. Compute the equivalent ..
Net operating working capital captures multiple dimensions : "Net operating working capital captures multiple dimensions of firms’ adjustments to operating and financial conditions. Sales growth, uncertainty of sales, costly external financing, and financial distress encourage firms to pursue more aggressive w..
Take a position in treasury bond futures contracts : Green Backs Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of 96-240. Green Backs thinks interest rates will go down over the period of investment. Should the bank go long or short on the futures contr..
Transaction on the balance sheet : Suppose the Federal Reserve purchases $10 billion worth of foreign currency in exchange for deposit accounts at the Federal Reserve. Show the changes that result from this transaction on the Fed’s balance sheet

Reviews

Write a Review

Financial Management Questions & Answers

  Portfolio that consists of equity ownership in three firms

You have a portfolio that consists of equity ownership in three firms. You own 800 shares of Stout Drink Company (SDC), 600 shares of Carbon Computing (CC) and 650 shares of Serrano Foods (SF). Their current share prices are $114, $20, and $122, resp..

  According to the affordable care act and reconciliation act

According to the Affordable Care Act and Reconciliation Act, a) What are some of its implications for financial managers. b) Who will bear its costs?

  Exchange for a loan problem

You are offered $1000 (in nominal dollars) 6 years from now in exchange for a loan of $750 today. You expect inflation to run 3.3% per year, and your real hurdle rate is 5%. Should you make the loan? You have $1000 in an account that yields a nominal..

  1 information about two diversified risky portfolios is

1. information about two diversified risky portfolios is given in the table belowa. assuming a risk-free rate of 5

  Decrease the operating cycle

Which one of the following actions will decrease the operating cycle?

  Explain the reasons why it is an incomplete hedge

If 6% coupon three year Commonwealth bond Futures contracts are currently trading at a price of 95.505, how many contracts does the portfolio manager need to buy/sell to hedge the portfolio? Explain the reasons why you think this may be an incompl..

  Investment has successfully increased shareholder wealth

What indications of financial performance must a company consider in evaluating whether an investment has successfully increased shareholder wealth?

  What is the fixed charge coverage

A firm has a net income before interest and taxes of $193,000 and interest expense of $28,000. What is the times-interest-earned ratio? And if the firm's lease payments are $48,500, what is the fixed charge coverage?

  Stated yield to maturity-expected yield to maturity

A 9-year bond of a firm in severe financial distress has a coupon rate of 10% and sells for $940. The firm is currently renegotiating the debt, and it appears that the lenders will allow the firm to reduce coupon payments on the bond to one-half the ..

  Fixed-rate mortgage

You have decided to buy a house. You can get a mortgage rate of 5 percent, and you want your payments to be $1,540 or less. How much can you borrow on a 15-year fixed-rate mortgage?

  Management has already signed the contract and committed to

management has already signed the contract and committed to a project whichhas a large negative net present value. this

  What will the adjusted eps and dps

What will the adjusted EPS and DPS be (rounded to the nearest cents)? And what would the stock price be (rounded to the nearest cent)?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd