Determine what happened to investment in net working capital

Assignment Help Financial Econometrics
Reference no: EM13334635

A firm's balance sheets for year-end 2011 and 2012 contain the following data. All items are in millions of dollars.

Dec. 31, 2011 Dec. 31, 2012
  Accounts receivable 36.7 33.4
  Inventories 30.7 26.4
  Accounts payable 26.7 13.4

 

Calculate the net working capital in 2011.

Calculate the net working capital in 2012.

What happened to investment in net working capital during 2012?

Reference no: EM13334635

Questions Cloud

What are the effects on the after-tax profits and cash flow : What are the effects on the after-tax profits and cash flow, if sales increase from $10.6 million to $11.5 million. What are the effects on the after-tax profits and cash flow, if variable costs increase to 60% of sales.
What is the velocity of the boat after batman lands in it : Batman (mass = 102 kg) jumps straight down from a bridge into a boat (mass = 550 kg) in which a criminal is fleeing. What is the velocity of the boat after Batman lands in it
Explain adding ammonium nitrate to an ammonia solution : Which of the following addition will result in no change in the pH of the solution a. Adding ammonium nitrate to an ammonia solution.
Evaluate the costs incurred compared to the benchmark cost : A consulting firm has a within the company a travel group that arranges flights and hotel accommodation for its over 1000 consultants. The cost of operating the travel group (excluding the costs associated with the actual travel such as hotel cost an..
Determine what happened to investment in net working capital : A firm's balance sheets for year-end 2011 and 2012 contain the following data. All items are in millions of dollars. What happened to investment in net working capital during 2012
Discuss the research methodology used for the study : Identify possible areas in which the research can be extended. Does the article call for further research on any specific issue? Identify limitations of the article and formulate them as potential research questions.
Find with what angular speed does the turntable rotate : A 50.0-kg woman stands at the rim of a horizontal turntable having a moment of inertia of 560 kg · m2 and a radius of 2.00 m. find With what angular speed does the turntable rotate
Facilitating marketing institutions : Facilitating marketing institutions, since they don’t take title to the goods, add no value to a supply chain, agree or disagree with this statement and explain your reasoning?
Major decision impacting the entire company : Construct a hierarchy (asymmetrical is fine) for a layoff decision a company has to face. This can be a very small decision for one department or a major decision impacting the entire company.

Reviews

Write a Review

Financial Econometrics Questions & Answers

  What are expected return & the standard deviation of return

(a) What are the expected return & the standard deviation of return on Harry's portfolio (b) Recalculate the expected return & the standard deviation where the correlation between the returns is 0 and 1.0, respectively.

  Determine what is the stocks current market price

Zephyr Electricals is a company with no growth potential. Its last dividend was $4.50, and it expects no change in future dividends. What is the current price of the company's stock given a discount rate of 9 percent

  Determine what is the value of patricks stock

If the firm's required return is 12 percent, the market value of debt is $300,000, the market value of preferred stock is $70,000, and the company has 100,000 shares of stock outstanding.

  Find additional premium that ethiers shareholder require

Ethier is financed with 40% debt and has a levered beta of 1.75. If the risk free rate is 4% and the market risk premium is 7%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk

  Determine how will the firms cash cycle change

If a firm starts selling its accounts receivable to a factor, how will the firm's cash cycle change

  How much must have saved to earn the required amount

Current Salary is (156,372.31) According to financial planners, the average retiree requires approximately 70% of their last year's working salary to live comfortably in retirement.

  How much will investment be worth in 20 years at king bank

You have $5,000 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent per month), while King Bank offers 15 percent but will only compound annually.

  What would be pmpm rate of utilization management programme

Bay Pines Medical Center estimates that a capitated population of 50,000 would utilize 440 inpatient days per 1,000 enrollees at an average cost of $1,374 per day.

  Determine what is the fair price of each bond now

ABC is also interested in buying some corporate bonds for its investment account. Suppose these bonds have identical coupon rates of 7.75% but one issue matures in 3 years, one in 8 years, and the third in 13 years.

  How much net working capital does the firm need to fund

Dandee Lions, Inc., has a cash balance of $97,000, accounts payable of $212,000, inventory of $195,000, accounts receivable of $311,000, notes payable of $57,000, and accrued wages and taxes of $71,000.

  Determine what is the cost of retained earnings for firm

What is the cost of retained earnings if the long-term growth rate in dividends for the firm is expected to be 8%

  Compute the bonds yield to maturity and yield to call

A 5.5% coupon municipal bond has 16 years left to maturity and has a price quote of 92.55. The bond can be called in 9 years. The call premium is one year of coupon payments.

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