Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: The Garcia Industries balance sheet & income statement for the year ended 2006 are as follows:

Balance sheet (in millions of dollars)

Assets                                                              Liabilities and Stockholders' Equity

Cash                $ 6.0                            Accounts Payable                                $10.0

Acc Receive       14.0                             Salaries, benefits and payroll               2.0

Inventories      12.0                             Other current liabilities                        10.0

Fixed assets     40.0                             Long term debt                                     12.0

                        $72.0                           Stockholders' equity                              38.0

                                                                                                                        $72.0

 The average inventory over the past two years also equals $12.0 million 

Income Statement (in millions of dollars) 

Net sales                                             $100.0

Cost of sales                                            60.0

Selling, gen/admin expenses                  20.0

Other expenses                                     15.0

Net income                                         $ 5.0 

[A] find out the length of the inventory conversion period

[B] find out the length of the receivables conversion period

[C] find out the length of operating cycle

[D] find out the length of the payables deferral period

[E] find out the length of the cash conversion cycle

[F] Find the meaning of the number find outd in (e)?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920336

Have any Question? 


Related Questions in Basic Finance

Explain why option traders often use spreads instead of

Explain why option traders often use spreads instead of simple long or short options and combined positions of options and stock ? Suppose that an option trader has a call bull spread. The stock price has risen substanti ...

Assume that the heights of men are normally distributed

Assume that the heights of men are normally distributed with a mean of 67.3 inches and a standard deviation of 3.5 inches. If 100 men are randomly selected, find the probability that they have a mean height greater than ...

Why should capital budgeting for projects in an overseas

Why should capital budgeting for projects in an overseas subsidiary be assessed from the parent's perspective rather than just the subsidiary's cash flow perspective? What additional factors deserve consideration in mult ...

Explain the following paradox a put option is a highly

Explain the following paradox. A put option is a highly volatile security. If the underlying stock has a positive beta, then a put option on that stock will have a negative beta (because the put and the stock move in opp ...

1 compare and contrast the three types of observation

1. Compare and contrast the three types of observation, identifying the advantages and disadvantages of each. 2. Most descriptive research designs gather information from a group of participants. However, the case study ...

An investor has projected three possible scenarios for a

An investor has projected three possible scenarios for a project as follows: Pessimistic-NOI will be $200,000 the first year, and then decrease 2 percent per year over a five-year holding period. The property will sell f ...

Analyze the financial condition of carters inc ticker cri

Analyze the financial condition of Carter's, Inc. (ticker: CRI) over the last five years. Use financial ratios that relate to its liquidity, activity, debt, profitability, and market value. In which areas has the company ...

Bull how is consumer debt different today than in the

• How is consumer debt different today than in the past? • What role do interest rates play in mounting consumer debt? • What are the typical interest rates applied to credit cards, mortgages, and other debt? • Many of t ...

A project has an initial cash outflow of 39800 and produces

A project has an initial cash outflow of $39,800 and produces cash inflows of $18,304, $19,516, and $14,280 for years 1 through 3, respectively. What is the NPV at a discount rate of 11 percent?

1 distinguish between a mortgage and a note2 what does it

1. Distinguish between a mortgage and a note. 2. What does it mean when a lender accelerates on a note? What is meant by forbearance? 3. Can borrowers pay off part, or all, of loans any time that they desire? 4. What doe ...

  • 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