Calculate the total cash inflows-total cash outflows

Assignment Help Finance Basics
Reference no: EM133121530

Next month, a garage that specialises in servicing commercial vehicles, is considering offering 50% of its customers a two month credit period for payment, as opposed to asking all its customers to pay up front. The owner of the garage has also managed to increase the time it needs to make its payments by negotiating with some of its suppliers. As of next month, 60% of the garages outflows will be payable immediately with the rest payable in one month's time, Outflows are estimated to be 2/5 of revenue each month. The owner of the garage estimates that revenue next month will be $40,000. Calculate the total cash inflows, total cash outflows and net cash flow for next month.

Reference no: EM133121530

Questions Cloud

Calculation of the continuation value : (a) Consider the calculation of the continuation value (CV). Suppose FCFT+1 is $225 million regardless of the expected permanent growth rate of free cash flows.
By what amount will income before income taxes be overstated : Assume that the 2022 errors were not corrected and that no errors occurred in 2021. By what amount will 2022 income before income taxes be overstated
Estimate the amount of extra life insurance : Q.1) Mr Nitesh Singh age 35 years is married to Natasha age 33 Years and has a daughter age 2 years. He is working in private bank and has annual income of Rs 1
Calculate the new closing balance for march : The business in question 2 now believes that in March, cash inflows will be $15,000 instead of $13,000 and cash outflows will be $7,000 instead of E5,500.
Calculate the total cash inflows-total cash outflows : Next month, a garage that specialises in servicing commercial vehicles, is considering offering 50% of its customers a two month credit period for payment, as o
Calculate the expected return on johnny portfolio : Alfred has an equally weighted portfolio of stocks X and Y. The beta of his portfolio is 0.9. Johnny has an equally weighted portfolio of stocks X, Y and Z. The
Determine the average maintenance cost : Tracy McCoy is shopping for a new car. She has identified a particular sports utility vehicle she likes but has heard that it has high maintenance costs. Tracy
Set up a worksheet with individual columns : The Metropolis Health System's Rehabilitation and Wellness Center offers outpatient therapy and return-to-work services plus cardiac and pulmonary rehabilitatio
BSM017 Finance for Managers Assignment : BSM017 Finance for Managers Assignment Help and Solution, Robert Gordon University - Assessment Writing Service

Reviews

Write a Review

Finance Basics Questions & Answers

  Inflation and interest rates

?(Inflation and interest rates?) What would you expect the nominal rate of interest to be if the real rate is 3.7 percent and the expected inflation rate is 7.5

  What is the firm market value weight of equity

Tarrasa Mining Corporation has 9.3 million shares of common stock outstanding and 215,000 6.1% semiannual bonds outstanding, par value $1,000 each.

  You plan to deposit the funds in a mutual fund that you

you want to go to europe 5 years from now and you can save 3100 per year beginning one year from today. you plan to

  Find solution of given problem using the gordon model

Assuming the investor's required rate of return is 9%, if a share of this common stock has just paid a dividend of $1.70 (annual).

  Identify which project should the company accept

Identify which project should the company accept based on NPV method. (Note: Please round up the result of each calculation of PV to 2

  What is organizational conflict

What is organizational conflict? Why does is occur? What are some methods of conflict resolution?

  What is the market risk premium

You are considering the purchase of Superior Oil International, Ltd. (stock symbol SOIL) common stock. You consult Yahoo Finance and find that the stock.

  Overall standard deviation this investor faces

Suppose portfolio ABC has a standard deviation of 19% and an expected return of 9. The risk-free rate is 3%. Consider an investor wishing to use ABC

  Compute the covariance of two securities

Stock A is expected to return 12 percent in a normal economy and lose 7 percent in a recession. Stock B is expected to return 8 percent in a normal economy and

  What are the considerations in choosing an investment banker

You are the owner of a small and successful firm with an estimated market value of $ 50 million. You are considering going public.

  Draw the production possibility frontiers for timber

Draw the Production Possibility Frontiers for timber and mobile phones in both countries.

  Many firms complain that implementing the requirements of

many firms complain that implementing the requirements of section 404 is very expensive. refer to sarbanes-oxley act of

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