Describe his working capital practices including his methods

Assignment Help Financial Management
Reference no: EM131190260

Assignment

Management of Working Capital Case Study: "George's Trains"

View the following video:

It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital practices. More specifically George asks you to do the following:

• Describe his working capital practices, including his methods of capital budgeting analysis techniques.

• Analyze the potential pitfalls in his capital budgeting practices that George should be aware of.

• Develop a simple statement of cash flows for George's Trains using any information gleaned from the video. What areas of improvement do you recommend? Provide at least three references from the Ashford University Library or other scholarly sources to support your recommendations.

In a three- to five-page paper (excluding the title and reference pages), respond to George's request for advice in detail. The paper should be properly formatted in alignment with APA 6th edition formatting.

Reference no: EM131190260

Questions Cloud

Calculate the positive and zero sequence currents in r line : In a 3-phase, 4-wire system, the currents in R, Y and B lines under abnormal Conditions of loading- Calculate the positive, negative and zero sequence currents in the R-line and return current in the neutral wire.
Problem regarding the diminishing marginal returns : Explain in about 4 paragraphs with numerical illustrations and graphs what is Diminishing Marginal Returns.
Accumulate in a private pension fund : How much Jim can accumulate in a private pension fund over 20 years if the fund offers 5% interest compounded annually, and he can afford to deposit $2,000 at the end of every 2nd year?
Calculate the initial investment : a) Calculate the initial investment. b) Calculate the annual cash flows. c) Calculate the terminal cash flow of the project.
Describe his working capital practices including his methods : Describe his working capital practices, including his methods of capital budgeting analysis techniques. Analyze the potential pitfalls in his capital budgeting practices that George should be aware of.
What would be the additional funds needed : Broussard Skateboard's sales are expected to increase by 20% from $7.8 million in 2016 to $9.36 million in 2017. Its assets totaled $5 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as proj..
Are you satisfied with the test for obscenity : What did the Court mean when it held, in Virginia v. Black, that "just as any State may regulate only that obscenity which is the most obscene due to its prurient content, so too may a State choose to prohibit only those forms of intimidation that..
How sensitive is wmin to product purities : How sensitive is Wmin to product purities? Does Wmin, depend on the particular separation operation used? Prove, by calculus, that the largest value of Wmin occurs for a feed with equimolar quantities of A andB.
Payment bundling have on health care costs : The Patient Protection and Affordable Care Act established a pilot program to expand the use of payment bundling for better coordinated care for Medicare beneficiaries. What impact does payment bundling have on health care costs?

Reviews

Write a Review

Financial Management Questions & Answers

  Capital mix that is different from current capital structure

If a firm’s management anticipates financing a project with a capital mix that is different from its current capital structure describe how the firm is subjecting itself to a calculation error if its historical WACC is used to evaluate the project.

  What was the return on equity for the company

The Earnings per Share (EPS) of company LMN for 2012 was $ 6. The Book Value per share of the company was $ 72. What was the Return on Equity (RoE) for the company?

  Two manufacturers of high quality

Fred Inc. and Ginger Corp. are two manufacturers of high quality toys in the US. Fred Stock Price $40 Standard Deviation Returns 45% Beta 1 D/E (market ratios) 0.3 M/B 2 and Ginger Stock Price $30 Standard Deviation Returns 35% Beta 1.3 D/E (market r..

  What should be the value of the put

A put option on a stock with a current price of $36 has an exercise price of $38. The price of the corresponding call option is $2.70. According to put-call parity, if the effective annual risk-free rate of interest is 6% and there are four months un..

  Which involves building a new refrigerated warehouse

Houston Inc. is considering a project which involves building a new refrigerated warehouse which will cost$7,000,000 at t = 0 and which is expected to have operating cash flows of $500,000 at the end of each of the next 20 years. Thus, at the end of ..

  The net process on the sale of the asset would be

An asset cost $10,000 and can be sold for $6,000. The book value of the asset is $4,000 and the tax rate is 35%. The net process on the sale of the asset would be:

  Compute weighted average cost of capital of firm

A firm has a capital structure with $10 in equity and $9 of debt. The cost of equity capital is 0.2 and the pretax cost of debt is 0.07. If the marginal tax rate of the firm is 0.37 compute the weighted average cost of capital of the firm.

  How much will she save per month for remainder of loan life

Two years ago Abilia purchased a $13,000 car; she paid $2,500 down and borrowed the rest. She took a fixed rate 60-month instalment loan at a stated rate of 7.0% per year. Interest rates have fallen during the last two years and she can refinance her..

  What is the difference in the current prices of these bonds

You are considering two bonds. Both have semi-annual, 8 percent coupons, $1,000 face values, and yields to maturity of 7.5 percent. Bond S matures in 4 years and Bond L matures in 8 years. What is the difference in the current prices of these bonds?

  The payables deferral period

Data on Wentz Inc. for 2008 are shown below, along with the payables deferral period (PDP) for the firms against which it benchmarks. The firm's new CFO believes that the company could delay payments enough to increase its PDP to the benchmarks' aver..

  Relevance to explaining overall corporate dividend behavior

Are dividends relevant in determining share values? Identify one factor that indicates they are, and one that indicates they are not. Give your opinion on this question and why you hold it. Select one of the following theories and provide an argument..

  Classic retirement problem

This is a classic retirement problem. A time line will help in solving it. Your friend is celebrating her 40th birthday today and wants to start saving for her anticipated retirement at age 65. What amount must she deposit annually now to be able to ..

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