What is the firm cash cycle

Assignment Help Financial Management
Reference no: EM131551078

McFly Corporation wants to understand its operating cycle better. With the information from the firm's financial statements below, please help them to calculate their operating cycle.

Cost of Goods Sold 124,000

Average Inventory 25,200

Credit Sales 196,500

Average Receivables 7,825

If the average payables amount was $9,560 what is the firm's cash cycle?

Reference no: EM131551078

Questions Cloud

Why is it important to corporations and their investors : Define capital structure. Why is it important to corporations and their investors?
Use a required rate of return or cost of capital rate : When discounting back to PV (from FV), why must we use a required rate of return or cost of capital rate? Explain these concepts fully.
What is average accounting return : What is the average accounting return?
What is the amount of the initial cash flow at year zero : If the new machine is purchased, what is the amount of the initial cash flow at Year 0?
What is the firm cash cycle : McFly Corporation wants to understand its operating cycle better. If the average payables amount was $9,560 what is the firm's cash cycle?
Consider a bond paying a coupon rate : Consider a bond paying a coupon rate of 8% per year annually,What are the bond's price today (P0), its price 1 year from now after the next coupon is paid (P1),
Should the old riveting machine be replaced by the new one : The old machine has been fully depreciated and has no salvage value. Should the old riveting machine be replaced by the new one?
Stock required rate of return is shared by rest of market : Suppose your own 10% estimate of the stock's required rate of return is shared by the rest of the market.
Using the du pont identity-the company roe is percent : Using the Du Pont Identity, the company's ROE is percent.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the present value if first payment comes immediately

The $21.0 million lottery payment that you have just won actually pays $1.4 million per year for 15 years. The interest rate is 9%. If the first payment comes in 1 year, what is the present value of the winnings? What is the present value if the firs..

  Loans offers the lowest effective annual rate

Which of the following one-year $ 1000 bank loans offers the lowest effective annual rate. A loan with an APR of 6.3 %, compounded monthly. b. A loan with an APR of 6.3 %, compounded? annually, that also has a compensating balance requirement of 10.2..

  Interest rate component and exchange gain-loss component

Outline the steps for CIA with the appropriate computation thereof and compute the profit. Compute the Return on Investment of $1 million and identify its components: Interest Rate Component and Exchange Gain/Loss Component.

  Individual retirement account-earns tax-deferred interest

An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.4%. Joe deposits ..

  The power of rippling effect of adding money

The power of a "rippling effect" of adding money to the financial system is measured by the ________. Which of the following will decrease the present value of a perpetuity, other things equal?

  Yield to maturity-compute the price of bond

The Florida Investment Fund buys 90 bonds of the Gator Corporation through a broker. The bonds pay 8 percent annual interest. The yield to maturity (market rate of interest) is 10 percent. The bonds have a 10-year maturity. Compute the price of a bon..

  Loan balance exceeds the value of the home

You are 62 years old, and your house appraises for $450,000. A bank is willing to give you a reverse mortgage at 50% LTV with a 6% fixed contract rate. You choose an option to receive equal monthly payments over a period of 10 years. If the home appr..

  Individuals and corporations for their operating expenses

Private colleges and universities rely on money contributed by individuals and corporations for their operating expenses. Much of this money is put into a fund called an endowment, and the college spends only the interest earned by the fund. Calculat..

  What is its return on equity and debt ratio

Vigo Vacations has $201 million in total assets, $5.0 million in notes payable, and $25.0 million in long-term debt. What is the debt ratio? Needham Pharmaceuticals has a profit margin of 5.5% and an equity multiplier of 2.2. Its sales are $90 millio..

  What is the amount of checkable deposits outstanding

If the banking system has $20 million in required reserve assets, what is the amount of checkable deposits outstanding?

  Impact of event to equilibrium price and quantity of event

The following events occur in the market for good B, which is a normal good: Identify the impact of the event to the equilibrium price and quantity of each event.

  Depreciated straight-line to zero over year project life

You estimate the sales price to be $10 per unit and sales volume to be 3,000 units in year 1; 10,000 units in year 2; and 1,000 units in year 3. The project has a three-year life. Variable costs amount to $3 per unit and fixed costs are $25,000 per y..

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