Its inventory from one supplier- operating and cash cycle

Assignment Help Financial Management

Reference no: EM13950019

Carter's Gym purchases its inventory from one supplier. This supplier has offered a 5% discount if Carter's will pay for its purchases within 10 days instead of the normal 32 days. Currently, Carter's cash cycle is 55 days and its operating cycle is 131 days. If they opt for the discount offered, the new operating cycle will be ______ and its new cash cycle will be ______ days.

Reference no: EM13950019

Questions Cloud

Insurance contracts have distinct legal characteristics : Insurance contracts have distinct legal characteristics that make them different from other legal contracts. Identify and discuss other distinct legal characteristics which are found in insurance contracts. Define and contrast the legal relationships..

Calculate the profits for the arbitrage strategy : Ms. Chambers, a U.S. arbitrageur, is looking for arbitrage opportunities after interest rate changes. The available funds for arbitrage is $5,000,000. The spot exchange rate (Kr/USD) is 6.1720; 3 month forward rate (Kr/USD) 6.1980. If arbitrage is po..

Operating cash inflows generated by the replacement : A new machine with an installed cost of $85,000. Sale of the old machine will yield $30,000 after taxes. Operating cash inflows generated by the replacement will exceed the operating cash inflows of the old machine by $20,000 in each year of a 6-year..

Information is most important for employees to understand : Imagine that you have recently been promoted to the role of Chief Training and Education Officer for Health Care Systems, Inc., a regional not for profit hospital, with over 3,000 employees who serve all aspects of patient services. What information ..

Its inventory from one supplier- operating and cash cycle : Carter's Gym purchases its inventory from one supplier. This supplier has offered a 5% discount if Carter's will pay for its purchases within 10 days instead of the normal 32 days. Currently, Carter's cash cycle is 55 days and its operating cycle is ..

Assignment to eliminate an unprofitable region : Brad’s company, an eastern based firm, is going through tough times. Downsizing is the only way to keep the company from going bankrupt. Brad has been given the assignment to eliminate an unprofitable region. More analysis indicates that if the corpo..

What effective annual interest rate : A firm offers terms of 2/10 net 40. What effective annual interest rate does the firm earn when a customer does not take the discount?

What is your expected one-year holding-period return : The risk-free rate of return is 6.0%, the expected rate of return on the market portfolio is 18%, and the stock of Xyrong Corporation has a beta coefficient of 1.7. Xyrong pays out 50% of its earnings in dividends, and the latest earnings announced w..

Calculate the wacc for martin industries given : A tax rate of 34%, the market return is 13.2% and the risk-free rate is 4.5%. 7,500 preferred stock shares selling at $88/share with a 6% dividend rate. 265,000 common shares outstanding selling for $76/share. The dividend is expected to grow by 4% p..

User Account

All Pages