Reference no: EM131867857
Trentham Products currently has $2,000,000 in accounts recievable, and its days sales in recievables is 31 days. If accounts recievable comprises half of the firms current assets and trentham has $6,000,000 in net fixed assets, what is trenthams total asset turnover ratio?
1.825 times
2.086 times
2.212 times
2.355 times
1.872 times
Trentham's management is concerned that the firm's credit policy is too lax and wants it tightended up. The industry average day's sales in recievables is 25 days. Suppose Trentham enforces a stronger credit policy and lowers its days sales in recievables to 25 days. Management expects to lose some credit sales because of the stronger policy, and thinks annual sales will decline by 5%. By how much will Trenthams accounts Recievable decrease as a result of this new policy?
$782,051
467,742
602,941
515,625
812,500
Suppose you are conducting ratio analysis for several different firms. Two such companies are iToys Inc.and Garland Financial Services. For which company will the inventory turnover ratio mean more?
iToys Inc.
Garland Financial Services
Further in your analysis, you come across two manufacturing firms that have nearly the same level of sales, the same size facilities, and the same number of employees. The only real difference you can see is that Firm A purchased all its major fixed assets many years aago, while firm B has purchased all its fixed assets very recently. If inflation has remained relatively constant, which firm is likely to have the higher fixed asset turnover ratio?
Firm A?
Firm B?
How much should you be willing to pay for this bond today
: Assume that you are considering the purchase of a $1,000 par value bond. How much should you be willing to pay for this bond today?
|
The tax consequences related to the assets purchase
: Without performing any calculations, describe the tax consequences related to the assets purchase, depreciation, and sale.
|
Determine the minimum required accounting average return
: How do we determine the minimum required accounting average return (AAR)?
|
What will be the amount of each annual withdrawal
: Assume that you won a hundred $1,000 par value bonds, with a total face value of $100,000. What will be the amount of each annual withdrawal?
|
What is trenthams total asset turnover ratio
: If accounts recievable comprises half of the firms current assets and trentham has $6,000,000 in net fixed assets, what is trenthams total asset turnover ratio?
|
Minimum-variance portfolio of the two risky funds
: A pension fund manager is considering three mutual funds. What is expected return and standard deviation for minimum-variance portfolio of the two risky funds?
|
Refinancing for tom assuming he stays until maturity
: What is the annualized IRR of refinancing for Tom assuming he stays until maturity?
|
Find the future value of investing
: Find the future value of investing $100,000 today at 5% compounded annually and compounded quarterly for 30 years.
|
Growth rates produces reasonable terminal value
: How do you derermine if a set of growth rates produces a reasonable terminal value?
|