How much net working capital does firm need to fund

Assignment Help Financial Management

Reference no: EM132008908

1. Elle Mae Industries has a cash balance of $51,000, accounts payable of $155,000; inventory of $195,000; accounts receivable of $255,000; notes payable of $211,000; and accrued wages and taxes of $41,000. How much net working capital does the firm need to fund?

2. Consider an asset that costs $220,000 and is depreciated straight-line to zero over its 11-year tax life. The asset is to be used in a 4-year project; at the end of the project, the asset can be sold for $27,500.

Required :

If the relevant tax rate is 32 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.)

Reference no: EM132008908

Questions Cloud

Explain what homeostasis is in the body : Explain what homeostasis is in the body, and describe one example in your own word of how your body maintains homeostasis. Be specific.

How the next ten years will be influenced : In today's time, several influences of travel and tourism are discussed. Using a specific destination and influence, discuss how the next ten years.

Different types of scheduling problems in the real world : What have you witnessed or experienced? What could have been done to make things better or what was done if your schedule was great?

About stock risk and expected future growth : In what sense do market value ratios reflect investors opinions about a stock’s risk and expected future growth?

How much net working capital does firm need to fund : Elle Mae Industries has a cash balance of $51,000, How much net working capital does the firm need to fund?

Determine how you would address each stages of change : Ascertain how each of the steps applies to your specific organization. Develop a strategy that illustrates how you would address each of the eight (8) stages.

What will the cash flows for project be during year two : The firm's marginal tax rate is 40 percent. What will the cash flows for this project be during year 2?

Public-proprietary companies must have at least one member : Every public company must have “Ltd” or “Limited” at the end of its name. Both public and proprietary companies must have at least one member.

Create a high-quality presentation on the given topic : Need to create a high-quality presentation on the given topic. You have 10 Mn to invest , You have invested 10 Mn in Fund A

User Account

All Pages