Calculate the end of year levels of inventories-receivables

Assignment Help Financial Management
Reference no: EM132005830

During 2016, XYZ Ltd. had the inventory period of 25 days, the accounts receivable period of 30 days and the accounts payable period of 20 days. Assume that XYZ Ltd. has the credit sales of $365 million in 2016 and the cost of goods sold of $255.5million. It had beginning of the year inventories, receivables and payables of $15 million, $28 million and $12 million respectively: i) Calculate the operating cycle and the cash conversion cycle of XYZ Ltd. in 2016? ii) Calculate the average inventories, the average receivables and the average payables during 2016? iii) Calculate the end of the year levels of inventories, receivables and payables in 2016?

Reference no: EM132005830

Questions Cloud

If risk has high frequency of occurrence and high severity : Which of the following would not be considered a personal risk? If a risk has a high frequency of occurrence and a high severity, you should:
Incremental net working capital requirements will be zero : Thereafter incremental net working capital requirements will be zero. Evaluate the project.
Calculate the annual effective cost and AEC : Calculate the annual effective cost, AEC, in each of the following short-term financing alternatives:
Calculate the bond coupon rate and coupon yield : Given that the bond’s par value is $1,000 and its price is $1,050, calculate the bond’s coupon rate and coupon yield.
Calculate the end of year levels of inventories-receivables : Calculate the end of the year levels of inventories, receivables and payables in 2016?
What is the production and consumption of japan : What is the production and consumption of Japan and France in toys and wine without trade?
Which of the two bonds has highest interest rate : The yield-to-maturity of each bond declines by one percentage point Which of the two bonds has highest interest rate?
The sustainable growth rate of the firm : The three components of the Dupont system of financial ratios.? The sustainable growth rate of the firm?
Makes semiannual payments : Calculate the price of a 5-year, $1,000 par value bond that makes semiannual payments,

Reviews

Write a Review

Financial Management Questions & Answers

  What amount should be used as the initial cash flow for this

Kelly's Corner Bakery purchased City five years ago at a cost of $690,000. Today, that lot has a market value of $710,000.

  Option holder exercises the option

What is your net profit on the option if Diebold's stock price decreases to $25 at expiration of the option and the option holder exercises the option?

  What price would you expect tcks common stock to sell

If the risk-free rate is 9.2 percent and the market risk premium is 6 percent, at what price would you expect TCK’s common stock to sell?

  Expected net present value of project assuming initial cash

Borussia Dortmund Manufacturing Company is considering 3-year project, What is expected net present value of the project assuming initial cash out of $2,000?

  Nominal rate of ten-year treasury-risk free real rate

You have been asked to determine a rate on a bond. It has a maturity of 10 years, a coupon of 6.00%, and a par value of 1000. You are given the following information. What is the yield on the bond? What is the nominal rate of the ten-year treasury?

  What is the present value of the tax savings

If the appropriate project interest rate is 8%, what is the present value of the tax savings from financing the project with a mortgage?

  The cost assigned to that project for equipment

If the company decides to use this forklift for a new product expansion project, the cost assigned to that project for this equipment should be:

  Same default risk premium and liquidity premium

A 5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described.

  How much must proctor save per year during the 20 years

Hackney has advised Proctor that she can safely assume that all savings will earn 12 percent per annum until she retires, but only 8 percent thereafter. How much must Proctor save per year during the 20 years preceding retirement?

  What is your rate of return on the fund

What is your rate of return on the fund if you sell your shares at the end of year?

  Affect expected interest rates

Suppose that some event takes place which does not affect expected interest rates

  What is the beta of a security with an expected return

What is the beta of a security with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%? Security XYZ has a beta of 1.1. The expected market rate of return is stable at 8% and the risk-free rate is 4%. If the realiz..

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