What level of inventory will allow the firm to have a ccc

Assignment Help Financial Management
Reference no: EM132036472

Use the following financial values to answer the questions below. Revenues = $4,200,000 and COGS = 45% of revenues. Receivables = $1,100,000, payables = $700,000 and inventory is $800,000.

a. C alculate the operating cycle.

b. C alculate the CCC .

c. W ith all else constant, what level of payables will allow the firm to have a CCC of 0 days?

d. W ith all else constant, what level of inventory will allow the firm to have a CCC of 0 days?

e. W ith all else constant, what level of receivables will allow the firm to have a CCC of 0 days? Is your answer feasible?

Reference no: EM132036472

Questions Cloud

Evaluate each of the following statements : Financial statements do not need to be analyzed because the numbers speak for themselves.
How many of the september contracts are currently open : How many of these contracts should you sell if you wish to deliver 85,000 bushels of corn in September?
Calculate the investors before-tax irr : Calculate the investor's before-tax IRR. Show and explain all calculations. Should the building be purchased? Why or why not?
Find the initial outlay in dollars for the project : Use the folllowing the answer the next two questions. XYZ corporation (US firm) is evaluating a project with the following expected cash flows.
What level of inventory will allow the firm to have a ccc : W ith all else constant, what level of receivables will allow the firm to have a CCC of 0 days? Is your answer feasible?
What is the percentage change in earnings per share : What is the percentage change in earnings per share of Ackerman if the company expects the operating profit to change by -3.5 percent?
Calculate the common size income statement for the company : Calculate the common size balance sheet and the common size income statement for the company.
What is the present worth and future worth : If you solve for an Internal Rate of Return (IRR) using a present worth equation, what value do you set the present worth to in order to solve the equation?
Empowering women through micro-finance : Evaluate how women empowerment programs through microfinance will create business opportunities for them - Empowering women through micro-finance

Reviews

Write a Review

Financial Management Questions & Answers

  The sum of net income and annual depreciation

Was Corp. is considering starting a new business involving short-term loans of magic amulets. This new business involves purchases of $14 million of new equipment. This new business is anticipated to generate net income of $1.43 million per year for ..

  What is the present value of the cost of leasing ambulances

MNO Emergency Services Inc. is negotiating a guideline lease for five new ambulances with Leasing International. MNO has received its best offer from Betterbilt Ambulances for a total price of $1 million. What is the present value of the cost of leas..

  What you do in terms of regression to capture timing effect

If you use this data set, as is, to regress sales on advertising, will it adequately capture the behavior that advertising in one month doesn't really affect sales in that month but only in future months?

  Name three ways a firm can evaluate service quality

Name three ways a firm can evaluate service quality and give examples of each.

  Housing investment for each financing program

What is the annualized rate of return net of your financing cost in your housing investment for each financing program?

  What rate of return do you need to earn to achieve your goal

You would like to retire in 60 years as a millionaire. If you have $7,000 today, what rate of return do you need to earn to achieve your goal?

  Create a 20 item likert scale to assess it

Choose a conceptual variable that can be considered to be a trait of interest to you, and create a 20-item Likert scale to assess it. Administer the scale to at least 20 people.

  What is the expected rate of return of the ten year

what is the expected rate of return of the 10 year, 1000$ par value bond paying 7 percent interest annuallu

  Your firm is forced to choose between two machines

Your firm is forced to choose between two machines, the two machines are perfect substitutes in terms of what they do yet they are different in design cost.

  Impact of healthcare on us economy versus other countries

Compare and contrast the impact of healthcare on the US economy versus other countries.

  What was your total return for last year

The market price for your stock is now $96.12. What was your total return for last year?

  Non-standard bond to raise capital

Standard Oil issued a non-standard bond to raise capital in the following way. At the bond’s maturity the company promised to pay $1,000 plus an additional amount based on the price of oil at that time. What are the two option positions required to r..

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