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

The 2012 year-end adjusted balances taken from the general

The 2012 year-end adjusted balances taken from the general ledger of Cooperstown Services, Inc. are listed below in general ledger order. Coopertown Suppliers, Inc. DR CR Cash $12,950 Accounts receivable 28,150 Supplies ...

As mentioned in the chapter during early 2010 investors

As mentioned in the chapter, during early 2010, investors began to worry that the government of Greece might default on its bonds. The rating agencies downgraded Greek bonds several times. Following one of the rating dow ...

In statistics you learn about type i and type ii errors a

In statistics, you learn about Type I and Type II errors. A Type I error occurs when a statistical test rejects a hypothesis when the hypothesis is actually true. A Type II error occurs when a test fails to reject a hypo ...

Challenges of international financeapa stylethe balance of

Challenges of International Finance APA Style The balance of payments (BOP) can be defined as the statistical record of a country's international transactions over a certain period of time presented in the form of double ...

Microsoft has a bond outstanding symbol msftgb with a 420

Microsoft has a bond outstanding (symbol: MSFT.GB) with a 4.20% coupon rate and a yield to maturity (continuously compounded) of 1.535%. The bond expires in June, 2019, and pays interest semi-annually. Use a face value o ...

1 what is behavioral research what are its fundamental

1. What is behavioral research? What are its fundamental goals and limitations? Why is learning about behavioral research important? 2. In what ways is behavioral research similar to and different from research in the na ...

A newly issued 10 year bond is valued at par on june 1 2017

A newly issued 10 year bond is valued at par on June 1, 2017. The bond has an annual coupon of 8.0 percent. On June 1 2020, the bond has a yield to maturity of 7.1 percent. The first coupon is invested at 8.0 percent and ...

Polychlorinated biphenyl pcb is among a group of organic

Polychlorinated biphenyl (PCB) is among a group of organic pollutants found in a variety of products, such as coolants, insulating materials, and lubricants in electrical equipment. Disposal of items containing less than ...

1 what is the importance for an individual of understanding

1. What is the importance for an individual of understanding time value of money concepts? For a corporate manager? Under what circumstance would the time value of money be irrelevant? 2. From a time value of money persp ...

Visit the website for your state homeland security office

Visit the website for your state homeland security office. Where in government is this office? What grants and other assistance does it provide to local governments and citizens of the state? Is this office colocated wit ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen