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Cash

Calculate cash from investments

"Use the following information to determine cash from investing activities." Accounts Receivable ($5,000) Cash $357,000 Inventory $213,000 Prepaid Expenses $25,000 Fixed Assets $463,000 Accumulated Depreciation ($213,000) Accounts Payable $112,000

Calculate overall change in cash

Calculate overall change in cash Please review the steps I used in preparing the attached problem. "Use the following information to determine your client's overal change in cash." Accounts Receivable ($5,000) Supplies $1,000 Inventory $3,000 Prepaid Rent ($2,000) Fixed Assets $18,000

Wal-Mart: Cash Flow Estimate

Every company has capital projects. The company you have selected must need something! Be it a new wing to the building, a new product line to be funded, a new piece of equipment, find one new acquisition your company needs. Once you have identified the new possible investment item, what problems are you going to have in es

Debt vs. Cash Financing

After you finish your discussion with the managers and finance personnel, the head of strategic planning stops by your office to discuss the IPO. He says that recently the investment bankers started to encourage the firm to begin to use more financial leverage as a sign to Wall Street that the company would be more aggressive wh

PDF Corp: Terminal Cash Flow

PDF Corp. needs to replace an old lathe with a new, more efficient model. The old lathe was purchased for $50,000 nine years ago and has a current book value of $5,000. (The old machine is being depreciated on a straight-line basis over a ten-year useful life.) The new lathe costs $100,000. It will cost the company $10,000 to ge

Two Definitions of Cash

What are the two definitions of cash, and why do corporate treasurers often use the second definition?

Midland Chemical Co: Compensating Balances, Cash Discount and Hedging

Midland Chemical Co. is negotiating a loan from Manhattan Bank and Trust. The small chemical company needs to borrow $500,000. The bank offers a rate of 8¼ percent with a 20 percent compensating balance requirement, or as an alternative, 9 3.4 percent with additional fees of $5,500 to cover services the bank is providing. In ei

Timberline: How many times will cash need to be replenished in next 3 months?

The Timberline firm expects a total need of $12,500 over the next 3 months. They have a beginning cash balance of $1,500, and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is $3.50. The interest rate on marketable securities is 8% per annum. There is a constant rate of cas

Effect of cash dividends on share price

Please help with the following problem. Provide step by step calculations in an Excel spreadsheet. The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.50 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown on the following table. a. What

Mater Pasta: forecast operating cash flows

Mater Pasta, Inc., has projected sales volume of $1,432 for the second year of a proposed expansion project. Costs normally run 70% of sales or about $1,002 in this case. The depreciation expense will be $80, and the tax rate is 34%. a) What is the net cash flow (operating cash flow)?

Forecast of growth rate in free cash flow

At the end of 2006, you forecast that a firm's free cash flow for 2007 will be $430 million. The firm has 5,000 million shares outstanding, trading at $4.30 each and no net debt. What is the forecast of the growth rate in free cash flows after 2007 that is implicit in the market price? Use a required return of 10%.

Best case operating cash flow

You are analyzing a project and have developed the following estimates. The depreciation is $72,000 a year and the tax rate is 35 percent. What is the best case operating cash flow? Base Case Lower Bound Upper Bound Unit Sales 2700 2400 2900 Price Per Unit $210 $19

The Company A has provided the following information

The Company A has provided the following information: Forecasted sales for 1st quarter $200,000 Forecasted sales for 2nd quarter 250,000 Cash sales = 10% of total sales Collection schedule: In quarter sold 75% In next quarter 25% What are forecasted cash collections for the second quarter for Company A?

Target Cash Level

The variance of the daily net cash flows for the Tseng Asian Import Co is $1.44 million. The opportunity cost to the firm of holding cash is 8% per year. The fixed cost of buying and selling securities is $600 per transaction. What should the target cash level and upper limit be, if the tolerable lower limit has been establis

Rate of Return/Net Cash Flow

Risk free rate of interest is 7.3% Market risk premium 14.1% What is the required rate of return on a stock beta 0.3? Expected return for overall stock market? Company with EBIT of 2 million depreciation expense of 625,000. It is 100% equity financed and is on 32% tax bracket. What's the net cash flow?

A Schedule of Cash Payments

The Elliot Corporation has forecast the following sales for the first seven months of the year: January $12,000 February $16,000 March $18,000 April $24,000 May $12,000 June $20,000 July $22,000 Monthly material purchases are set equal to

Market earnings and cashflows

Consider the following statement: "I don't know why anyone would ever try to value earnings. Obviously, the market knows that earnings can be manipulated and only values cash flows." Discuss in 1 paragraph. Consider the statement that "the DCF valuation method has increased managers' focus on short-term rather than long-term

Calculating Investment Returns & Cash Dividends

1: Calculating Investment Returns What is the most valid approach to Calculating Investment Returns? Should the same approach be used for every investment type? why or why not? 2: Cash Dividends Do cash dividends have an affect on the return of stock, and will a stock with a stable dividend history have less market volatil

Value of 2/10 n30

Now if you were a finance manager and several of your suppliers were offering you 2/10 n30, but when it came time to pay the invoice you did not have enough cash in the bank to cover, what would you do?

Cash balance/ float concepts

A company has the following cash balance: Company's ledger balance = $600,000 Bank's ledger balance = $625,000 Available balance = $550,000 a. Calculate the payment float and availability float b. Why does the company gain from the payment float? c. Suppose the company adopts a policy of

Interest calculation and Cash-Flow

Question 1: Would you rather have a savings account that pays 5% interest compounded semiannually or one that pays 5% interest compounded daily? Explain. Now, suppose on July 1st you deposit $10,000 in an account that pays a nominal, or quoted, interest rate of 11.33463 percent, with interest added (compounded) daily. Th

Uneven cash flow stream

I need to find the PV of the cash flow streams @ 8% compounded annually. and then (B). is 0 % compounded annually. Uneven cash flow stream. A. Find the present values of the following cash flow streams at 8 percent, compounded annually. 0 1 2 3 4 5 __________________________________________________ $0 $100