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FIN 515 Week 7 Problem Set
Check this A+ tutorial guideline at
http://www.fin515entirecourse.com/fin-515/fin-
515-week-7-problem-set
For more classes visit
http://www.fin515entirecourse.com
www.fin515entirec
ourse.com
FIN 515 Week 7 Problem Set
Chapter 26 (page 903):
Answer the following questions:
How will a firm's cash cycle be affected if a
firm increases its inventory, all else being
equal?
How will a firm's cash cycle be affected if a
firm begins to take the discounts offered by its
suppliers, all else being equal?
The Greek Connection had sales of $32 million
in 2012, and a cost of goods sold of $20 million.
Asimplified balance shee
below:
e firm appears
Calculate The Greek Connection's net working
capital in 2012.
Calculate the cash conversion cycle of The
Greek
Connection in 2012.
The industry average accounts receivable days is
30 days. What would the cash conversion cycle
for The Greek Connection have been in 2012 if it
had
matched the industry average for accounts
receivable days?
Assume the credit terms offered to your firm by
your suppliers are 3/5, Net 30. Calculate the cost of
the trade credit if your firm does not take the
discount and pays on day 30.
WWW.firChapler 27 (page 925):
Which of the following companies are likely to
have high short-term financing needs? Why?
A clothing retailer
A professional sports team
An electric utility
A company that operates toll roads A
restaurant chain
Sailboats Etc. is a retail company specializing in
sailboats and other sailing-related equipment. The
following table contains financial forecasts as well
as current (month 0) working capital levels.
During which months are the firm's seasonal
working capital needs the greatest? When does it
have surplus cash?
ww.fin515entirecourse.co

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Fin 515-week-7-problem-set

  • 1. FIN 515 Week 7 Problem Set Check this A+ tutorial guideline at http://www.fin515entirecourse.com/fin-515/fin- 515-week-7-problem-set For more classes visit http://www.fin515entirecourse.com www.fin515entirec ourse.com FIN 515 Week 7 Problem Set Chapter 26 (page 903): Answer the following questions:
  • 2. How will a firm's cash cycle be affected if a firm increases its inventory, all else being equal? How will a firm's cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal? The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. Asimplified balance shee below: e firm appears Calculate The Greek Connection's net working capital in 2012. Calculate the cash conversion cycle of The Greek Connection in 2012. The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2012 if it had
  • 3. matched the industry average for accounts receivable days? Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30. WWW.firChapler 27 (page 925): Which of the following companies are likely to have high short-term financing needs? Why? A clothing retailer A professional sports team An electric utility A company that operates toll roads A restaurant chain
  • 4. Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains financial forecasts as well as current (month 0) working capital levels. During which months are the firm's seasonal working capital needs the greatest? When does it have surplus cash? ww.fin515entirecourse.co