Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Auction Metal Products (AMP) has demanded working capital loan from your bank and has given the data. Use this information to reply problems a through d.

Assets Liabilities + Equity
cash $ 120,700 accounts payable $349,100
accounts receivable 592,000 accrued expenses 112,500
inventory 378,100 notes payable: bank 171,000
fixed assets (net) 673,700 current maturity: LT debt 100,000
long-term debt 500,000
stockholders’ equity 531,900
Total $1,764,500 Total $1,764,500
Average daily sales = $23,600
Average daily cost of goods sold = $16,490
Average daily purchases = $15,030
Average daily operating expense = $ 8,800

a) Compute AMP’s asset cash-to-cash cycle. Illustrate all work.

b) Compute AMP’s liability cash-to-cash cycle. Illustrate all work.

c) Given your calculations, how much does AMP require in working capital financing? Illustrate all work.

d) Suppose that AMP eliminates 10% discount if offers to customers if they pay within 10 days. As result, accounts receivable outstanding increases by 50%. Compute and describe the effect this change will have on AMP’s borrowing needs?

Requirements
Min Pages: 1

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914546

Have any Question? 


Related Questions in Basic Finance

Check writing fees randy a student has 500 to deposit in a

Check Writing Fees. Randy, a student, has $500 to deposit in a new checking account, but Randy knows he will not be able to maintain a minimum balance. He will not use an ATM card, but will write a large number of checks ...

1 what are some of the physical considerations that a

1. What are some of the physical considerations that a developer should be concerned with when purchasing land? How should such considerations be taken into account when determining the price that should be paid? 2. What ...

Each of the following research studies uses a survey as a

Each of the following research studies uses a survey as a method for collecting data. However, not all of the studies are examples of the survey research design. Based on the information provided for each study, indicate ...

Locate a newspaper or magazine article that reports a

Locate a newspaper or magazine article that reports a behavioral science research project. a. Determine whether the project is a descriptive, a correlational, or an experimental research design. b. What variables are mea ...

Suppose one year ago a swiss investor bought one year us

Suppose one year ago a Swiss investor bought one year U.S. Treasury bills at a price of $9,500 with a maturity value of $10,000. The exchange rate at that time was 1.420 Swiss francs per dollar. Today, at maturity, the i ...

A recent survey at a major corporation found that employees

A recent survey at a major corporation found that employees who regularly participated in the company fitness program tended to have fewer sick days than employees who did not participate. However, because the study was ...

What is the excess burden of taxation why is there an

What is the excess burden of taxation? why is there an excess burden, and what factors affect the size of the excess burden for a specific tax? if several goods are to be tax, how should the taxes be distributed to minim ...

1 when and why would nonprobability sampling methods be

1. When and why would nonprobability sampling methods be used? 2. Under what conditions is sampling bias likely to occur, what are its effects on generalization, and how can it be avoided? 3. Indicate the similarities an ...

Wilsons antiques is considering a project that has an

Wilson's Antiques is considering a project that has an initial cost today of $10,000. The project has a two-year life with cash inflows of $6,500 a year. Should Wilson's decide to wait one year to commence this project, ...

The ceo of a large corporation holds a position of 25

The CEO of a large corporation holds a position of 25 million shares in her company's stock, which is currently priced at $20 and pays no dividends. She is concerned that, because of her large shareholdings and the fact ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro