What is its cash cycle

Assignment Help Financial Management
Reference no: EM13809228

A firm has an inventory turnover of 8.11, an inventory period of 45 days, average inventory of $650,000, a receivables period of 32 days, and average payables of $750,000. What is its cash cycle?

A. 52 days

B. 39 days

C. 32 days

D. 25 days

Reference no: EM13809228

Questions Cloud

Collect money from the insurance policy : Tom tells Bob that he will pay Bob $5,000 to put a cherry bomb in his gas tank so that Tom can collect money from the insurance policy on a new, cherry red sports car. If Bob carries out Tom’s wishes and places a cherry bomb in the gas tank of Tom’s ..
Under the theory of negligence : The Smith family was traveling on their summer vacation from Massachusetts to Wyoming. Along the way, the family was involved in an accident when they proceeded to drive through an intersection;  Is Mr. Smith correct? Where could he sue Mr. Jones? Ex..
Potential problems regarding the statute of frauds : Select three types of contracts that are required to be in writing under the Statute of Frauds. Then, assume you are the instructor of a group of young students and help them understand why we have the Statute of Frauds. Propose 1 solution to the pot..
Statements regarding cost of capital : Which of the following statements regarding cost of capital is incorrect?
What is its cash cycle : A firm has an inventory turnover of 8.11, an inventory period of 45 days, average inventory of $650,000, a receivables period of 32 days, and average payables of $750,000. What is its cash cycle?
Calculate the firms weighted average cost of capital : Given the following information, calculate the firm's weighted average cost of capital (WACC). Market value of common stock=$60 million; market value of preferred stock=$10 million, market value of debt=$30 million; cost of common stock=15%; cost of ..
Remainder is invested in T-Bills : You have $100,000 invested. Of that, $50,000 is invested in IVM stock which has a beta of 1.4, $30,000 is invested in UBM stock with a beta of 1.2, and the remainder is invested in T-Bills. Which of the following is true?
What will be the value of equity after the restructuring : Consider an unlevered firm with EBIT of $6 million and 1 million shares of common equity outstanding. The required rate of return on the firm’s assets is 10%. The firm has a corporate tax rate of 40%. The firm is considering issuing $18 million in de..
Net income-total asset turnover-equity multiplier : You are considering investing in Dakota’s Security Services. You have been able to locate the following information on the firm: Total assets are $32.5 million, accounts receivable are $4.45 million, ACP is 25 days, net income is $4.00 million, and d..

Reviews

Write a Review

Financial Management Questions & Answers

  What would financial analyst be most justified in concluding

A firm's current ratio has steadily increased from 2009 to 2014, from 1.3 in 2011 to 3.9 in 2014. What would a financial analyst be most justified in concluding?

  Concerned over who has priority of repayment

Mark purchased a very expensive automobile on credit. Within a week, Mark discovered that a tune-up was necessary, for he was in the habit of driving at an excessive rate of speed. When the car was repaired, the bill was more than $1,000. Mark does n..

  What types of products category

Choose a product from the list. Name and describe the product category below. What types of products are included? Breakfast Cereal, Dairy products, Footwear.

  What is the interest-on-interest portion

What is the interest-on-interest portion of a $1,000 par, 5-year (semi-annual payments), 7% coupon bond’s $ return if the reinvestment rate is 4.5%?

  Is the bond selling at a premium or discount and why

Calculate the price of the bond you have selected. Is the bond selling at a Premium or Discount and why?

  Calculate the amount of net working capital

Romo, Inc. has current assets of $1,850, net fixed assets of $8,600, current liabilities of $1,600, and long-term debt of $6,100. Calculate the value of the shareholders' equity for this firm. Calculate the amount of net working capital.

  Problem 130 year monthly mortgage was 450000 with annual

problem 130 year monthly mortgage was 450000 with annual interest rate of 5.what is the principal for first year

  Describe the qualitative and quantities capital budgeting

Apple is considering a large capital investment in India. The project cash flows have been prepared in rippers, however, Apple plans to fund the entire investment out of its us dollar holdings. Describe the qualitative and quantities capital budgetin..

  Capital gains yield and dividend yield

Suppose you know a company's stock currently sells for $70 per share and the required return on the stock is 16 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's th..

  Environmental costs increase

Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate o..

  Buys stream of lottery payments

On may 1,2008 your client won 21.25 million in the Wisconsin lottery. The lottery commission gave them the option of receiving a lump sum or a 25-year annuity paying 850,000 each year, with the first payment received on May 1, 2008 and the last payme..

  Discuss the different roles of financial institutions

Discuss the different roles of financial institutions in the economy in general. Also, discuss the current regulations in the financial services industry

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