Define the cash conversion cycle and explain the components

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Question -

1. From what sources might a corporation obtain funds through long-term debt? What is a bond indenture? What is a mortgage?

2. Under what circumstances does a premium on bonds payable occur and how do we account for this premium? Under what circumstances does a discounts on bonds payable occur and how do we account for this discount?

3. On Mar. 31, 2012, Zenon Systems sold $50,000 in long-term bonds for $46,860. The bonds will mature in 8 years and had a stated interest rate of 5% and an effective rate of 6%. What would the price have been if the effective rate were 4% (stated rate remains at 6%)? Answer to at least the nearest dollar.

4. Why is working capital management important to a company? Are there particular industries where managing working capital is more important?

5. Define the cash conversion cycle and explain the components of it.

Reference no: EM131840398

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