• Q : Determine the number of odd day....
    Finance Basics :

    Timberline Inc. has sales of $642,000 and average accounts payable of $36,400. The cost of goods sold is equivalent to 65 percent of sales. 

  • Q : Calculate length of the inventory period....
    Finance Basics :

    Stoney Brooke, Inc. has sales of $890,000 and cost of goods sold of 640,000 dollar. The firm had a starting inventory of 36,000 dollar & an ending inventory of $46,000.

  • Q : Objective questions on working capital management....
    Finance Basics :

    Ski Lifts' working capital financing policy is relatively aggres­sive; that is, the company finances some of its permanent assets with short term discretionary debt.

  • Q : Calculate the estimated net annual savings....
    Finance Basics :

    Cross Collectibles currently fills mail orders from all over the United State and receipts come in to headquarters in Little Rock, Arkansas. The company's average accounts receivable (A/R) is $2.5 mil

  • Q : Estimate system projected external capital requirement....
    Finance Basics :

    System computers make bulk purchases of small computers, stock them in conveniently located warehouses, & ships them into its chain of retail stores.

  • Q : Estimate the proposed change in credit standards....
    Finance Basics :

    Jonah’s Boats, Inc. is considering relaxing its credit standards in order to meet a competitor’s alter in credit policy. As a result of the proposed change, sales during the coming year ar

  • Q : Compute the firms operating and cash conversion cycles....
    Finance Basics :

    Sunaty Calendar Company is examining the performance of its cash management department. The firm has inventory which turns 7.2 times per year, an average pay period of 40 days, & an average collec

  • Q : Companys working capital management....
    Finance Basics :

    Using Ford's yearly report for the year 2006 - 2007, examines the company's working capital management. Describe why the company's operating and cash cycles are or are not optimized.

  • Q : Managing working capital....
    Finance Basics :

    A new computer system allows your firm to more exactly monitor inventory & anticipate future inventory shortfalls. As a result, the company feels more able to pare down its inventory levels.

  • Q : Prepare a statement of cash flows....
    Finance Basics :

    Make a statement of cash flows that describe the change that occurred in cash during the month. You may assume that the change in each balance sheet amount is due to a single event.

  • Q : Calculate net operating income and operating cash flow....
    Finance Basics :

    During the 1998, the Senbet Discount Tire Company had gross sales of 1 million dollar. The firm’s cost of goods sold and selling expenses were $300,000 & $200,000, respectively.

  • Q : Calculate earnings before interest and taxes....
    Finance Basics :

    The Can-Do Co. is examining a proposed project. The company expects to sell 12,000 units, give or take 4 percent. The expected variable cost per unit is $7 & the expected fixed cost is $36,000.

  • Q : Identify the impact of the transactions....
    Finance Basics :

    Identify the impact [increase or decrease] of given transactions on Cash & Net working capital

  • Q : Market valuations for acquisition of firms....
    Finance Basics :

    Shefrin's Chapter 10 (pp 162-163) mentions AT&T's gaining of NCR. In the 5 months that followed AT&T's announcement that it planned to acquire NCR, the cumulative abnormal return over the nego

  • Q : Determine the share price....
    Finance Basics :

    Describe the major differences in the governance and control structures among the United State, Japanese, & German corporations. 

  • Q : Calculate the share price....
    Finance Basics :

    If Blue Mountain acquires Red River for 3 million dollar in cash, how will the shareholders of each make out on the deal?

  • Q : Calculate the termination fees....
    Finance Basics :

    “Prior to entering into the EPL Merger Agreement, Stone terminated its merger contract with Plains Exploration and Production Company [Plains] & Plains Acquisition Corp.

  • Q : Taxes, & the time value of money....
    Finance Basics :

    the lesser can claim the tax deductions associated with asset ownership & realize the leased asset's residual value. In return, the lesser must pay tax on the rental profits.

  • Q : Calculate the future worth....
    Finance Basics :

    Calculate the future worth for the following cash flows:

  • Q : Objective questions on capital structure and leverages....
    Finance Basics :

    Volga Publishing is considering a proposed rise in its debt ratio, which will also increase the company's interest expense. The plan would involve the company issuing new bonds and using the proceeds

  • Q : Calculate the financial, operating and combined levarage....
    Finance Basics :

    Faston Inc expects sales of silicon chips to be 60 million dollar this year. Because this is a very capital intensive business, fixed operating costs are 20 million dollar.

  • Q : Calculate the new level of annual interest charges....
    Finance Basics :

    A company has sales of 10 million dollar, variable costs of $5 million, EBIT of $2 million, & a degree of combined leverage of 3.0. If the company wishes to lower its degree of combined

  • Q : Calculate operating, financial and combined leverage....
    Finance Basics :

    Albatross Airline's fixed operating costs are 5.8 million dollar, and its variable cost ratio .20. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent.

  • Q : Objective questions on leverage analysis....
    Finance Basics :

    Ames Drilling Corp. reported that its sales and EBIT increased by 10%, but its EPS increased by 30%. The much larger change in earnings per share could be the result of

  • Q : Objective questions based on leverage analysis....
    Finance Basics :

    A corporation with very high growth prospects and many positive NPV projects to fund may want to increase its dividend based on

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