Ask Question, Ask an Expert


Ask Financial Accounting Expert

Working Capital Analysis

Task1. Capers, Inc. has just prop up you to Chief financial officer. Because this is a new office in the company, you are undermanned and many of the responsibilities have been allocated to you.

The first task you have been assigned concerns the cash conversion cycle. Your boss has asked that you inspect the following data:

i) Inventory conversion period is sixty Days

ii) Payables deferral period is thirty days

iii) Receivables collection period of forty days

The second task concerns the cost of bank loans under differing conditions. Specifically:

i) The company requires $1,500,000 for a new project.

ii) The loan will cost 10% simple interest, for four months, with a 20% compensating balance.


problem1. What is firm’s cash conversion cycle?

problem2. How many times per year are firm’s inventory turnover, when sales are $4,000,000 per year?

problem3. When sales are all credit sales and amount to $4,000,000 per year, what is firm’s average investment in receivables?

problem4. What is nominal interest rate on the loan?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93839

Have any Question? 

Related Questions in Financial Accounting

A-corp owns 100 of b-corp and c-corp a-corp sells its

A-Corp owns 100% of B-Corp and C-Corp. A-Corp sells its C-Corp stock to D-Corp during 2014. All letters refer to domestic corporations that own one class of stock and are includable. -Does A-Corp's sale of it's C-Corp st ...

Given the following information about a product at phyllis

Given the following information about a? product, at Phyllis? Simon's firm, what is the appropriate setup? time? Setup labor cost ?$30.00 per hour Annual holding cost ?$17 per unit Daily production 1,200 ?units/day Annua ...

Precious inc is a merchandiser of a single line of golden

Precious, Inc. is a merchandiser of a single line of golden rings. At the beginning of the? day, the shop had 10 rings in its inventory. During the? day, 4 new rings were delivered to the shop. By close of? business, onl ...

1 discuss the accounting cycle which steps in the cycle do

1: Discuss the accounting cycle. Which steps in the cycle do you consider to be the most important? 2: In addition to trend analysis, analysts frequently incorporate external (non-financial) information into the prospect ...

Analyzing and journalizing bond transactionon january 1

Analyzing and journalizing bond transaction On January 1, 2014, Merchandise Credit Union (MCU) issued 7%, 20- year bonds payable with face value of $300,000. The bonds pay interest on June 30 and December 31. Requirement ...

Nofly corporation sells three different models of a

NoFly Corporation sells three different models of a mosquito “zapper.” Model A12 sells for $60 and has variable costs of $36. Model B22 sells for $102 and has variable costs of $71. Model C124 sells for $421 and has vari ...

Service department chargesthe centralized employee travel

Service Department Charges The centralized employee travel department of Camtro Company has expenses of $528,000. The department has serviced a total of 6,000 travel reservations for the period. The Southeast Division ha ...

The following account balances were taken from abc companys

The following account balances were taken from ABC Company's 2020 balance sheets: January 1, 2020 December 31, 2020 Accounts payable ? 50,000 Accounts receivable ? 82,000 Cash 35,000 38,000 Common stock 105,000 135,000 I ...

Plant assets please respond to the followingcompare and

Plant Assets" Please respond to the following: Compare and contrast the three (3) methods for depreciating plant assets (straight line method, Diminishing Balance Method and Double Declining Method). Recommend the method ...

Tiger furnishings produces two models of cabinets for home

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: Basic Dominator Total Units produced 1,380 430 1,810 Machine-hour ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate