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# Cash

### Profits and Cash Flow & Budgets

Please help me with the following questions. I need more insight. 1. What is the difference between profits and cash flow? 2. Why can a company outgrow its cash? 3. What is the relationship between profit margins and growth capacity? And: 1. Who should be involved in the development of the budget? 2. Why is

### 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

### Identify the potential causes of the decrease of cash

The CEO of your computer chip manufacturing company was recently very pleased to announce that growth rates in the organization appear to be topping 30% per annum and this trend is expected to continue into the foreseeable future. While everyone in the organization seems pleased with this announcement, from your vantage point as

### Why are Treasury Bills a Financial Managers' Investment Favorite?

Could I get a clear answer on understanding what the T-bills are and why they are a favorite place for investing cash? Thank you.

### Cash flows

Two projects being considered are mutually exclusive and have the following projected cash flows:. Year Project A Cash Flow Project B Cash Flow 0 -\$50,000 -\$50,000 1 15,625 0 2 15,625 0 3

### Company Cash Balance

Indicate whether the following actions increase, decrease, or cause no change in a company's cash balance. a) Interest rates paid on money-market securities rise. b) Commissions charged by brokers increase. c) The compensating-balance requirement of a bank is lowered. d) The cost of borrowing decreases. e) The firm's

### Solving for Cash Interest

Question: Hooker Company sells \$200,000 of ten-year, 8% bonds to yield 10% on January 1, 2005. The bonds pay interest annually on December 31. The bonds were sold at a discount of \$24,578. The amount of cash interest paid in 2005 on the bonds is ?

### If \$1,000,000, 8% bonds are issued at 102 1/2, the amount of cash received is?

Question 3: If \$1,000,000 of 8% bonds are issued at 102 1/2, the amount of cash received from the sale is:

### Treatment of cash by accountants and financial managers

How do accountants and financial managers treat cash differently?

### Calculating Cash Collections for Oz-man Company

The Oz-man Company has projected the following quarterly sales amounts for the coming year: Sales Q1 \$3600 Q2 \$3300 Q3 \$2400 Q4 \$5600 a. Accounts receivable at the beginning of the year are \$1800. Oz-man has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the fo

### Acme Corp purchased a computerized measuring device...

Acme Corp purchased a computerized measuring device two years ago for \$80,000. It falls into the five-year category for MACRS depreciation. The equipment can currently be sold for \$28,400. A new piece of equipment will cost \$210,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipme

### Total value of the terminal year non-operating cash flows at end of year 3

Evaluate the proposed acquisition of a new computer. The computer's price is \$40,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating working capital of \$2,000. The computer would increase the firm's before-tax revenues by \$20,000 per year but would also increase o

### Cash Discount

1) A supplier is offering you firm a cash discount of 2 percent if purchses are paid for within ten days otherwisse the bill is due at the end of sixty days. Would you recommend borrowing from a bank at an 18 percent annual interst rate to take advantage of the cash discount offer? Explain 2) Assume that you have been offe

### How Rising Sale Costs can Cause a Decrease in Cash Position

Explain to Xtreme Toys® management how rising sales could cause a decrease in the company's cash position and provide three specific recommendations to management on ways to reduce the cash gap.

### Prepare a monthly cash receipts schedule for the firm for March

Pirate Video Company has made the following sales projections for the next six months. All sales are credit sales. March \$24,000 June \$28,000 April 30,000 July 35,000 May 18,000 August 38,000 Sales in January and February were \$27,000 and \$26,000, respectively. Experience has shown that of total

### Disbursements

Use the following to answer question 99: KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. May June July (actual) (budget) (budget) Sales

### Can you please explain how to work this problem?

Using the free cash flow approach, what should the company's stock price be today? Today is December 31, 2002. The following information applies to Harrison Corporation: -After-tax operating income [EBIT(1-T)] for 2003 is expected to be \$950 -The company's depreciation expense for 2003 is expected to be \$190 million -The co

### Cash projections and schedule of cash receipts

3. Gibson Manufacturing Corp. expects to sell the following number of units of steel cables at the prices indicated under three different scenarios in the economy. The probability of each outcome is indicated. What is the expected value of the total sales projection? Outcome Probability Units Price A 0.20 100 \$20

### Cash not Profit

Agree or disagree. Why? Cash -- Not Profits -- is King. In measuring value we will use cash flows rather than accounting profits because it is only cash flows that the firm receives and is able to reinvest.

### Schedule of Cash Receipts

Victoria's Apparel has forecast credit sales for the fourth quarter of the year as: September (actual) . . . . . . . . . . \$50,000 Fourth Quarter October . . . . . . . . . . . . . . . . . . . \$40,000 November . . . . . . . . . . . . . . . . . 35,000 December . . . . . . . . . . . . . . . . . 60,000 Experience has shown tha

### Residual Policy vs. Cash Dividends

I am having trouble calculating the difference between residual policies and cash dividends. Please see attached file. Thank You! A company is evaluating its dividend policy. What would the differences be with a residual policy vs cash dividends? Capital budget \$10,000,000 Desired capital structu

### Incremental Cash Flows associated with a donation of a valuable painting?

Incremental Cash Flows Incremental Cash Flows. A corporation donates a valuable painting from its private collection to an art museum. Which of the following are incremental cash &#64258;ows associated with the donation? a. The price the &#64257;rm paid for the painting. b. The current market value of the painting. c

### Summary of Cash Payments

The Liston Inc. has forecast the following sales for the first seven months of the year: January \$10,000 May \$10,000 February 12,000 June 16,000 March 14,000 April 20,000 July 18,000 Monthly material purchases are set equal to 30 percent of forecasted sales for the next month. Of the total material costs, 40 perc

### Quick Computing Company: Evaluate Proper Cash Flows for new chip

Quick Computing Company currently sells 10 million computer chips each year at a price of \$20.00 per chip. It is about to introduce a new chip, and it forecasts annual sales of 12 million of these improved chips at a price of \$25.00 each. However, demand for the old chip will decrease, and sales of the old chip are expected to

### Value of missing cash flow in fourth year to have a 15% return

Foster Industries has a project which has the following cash flows: Year Cash Flow 0 -\$300.00 1 100.00 2 125.43 3 90.12 4 ? What cash flow will the project have to generate in the fourth year in order for the project to have a 15% rate of return?

### Excess Cash Balance

In the month of August, a firm had total cash receipts of \$10,000, total cash disbursements of \$8,000, depreciation expense of \$1,000, a minimum cash balance of \$3,000, and a beginning cash balance of \$500. The excess cash balance (required financing) for August is _________ a) required total financing of \$500, b) excess

### Cash vs. Debt

Discussion Question 1: A company here in San Diego was in the news about a year ago regarding its' success and the concerns that industry analyst's had with the company. The company is Websense. They make Web filtering software for corporations, stopping employee use of company computers to access unauthorized web-sites (think

### Calculating Float, Net Float, Cash Discounts

Please help me with the problems attached. . Calculating Float. You have \$60,000 on deposit with no outstanding checks or uncleared deposits. If you deposit a check for \$110,000. a. Does this create a disbursement float or a collection float? b. What is your available balance? c. Book balance? 6. Calcul

### Impact on the Cash and Operating Cycles

Walk me through how to solve this problem: indicate the impact on the cash and operating cycles, respectively, using I = increase, D = decrease, or N = no change: A. the terms of cash discounts offered to customers are made more favorable. B. the cash discounts offered by suppliers are increased and payments are made earli

### combination of cash, debt, and preferred stock,

Discussion Question #2 Your company is a retailer and needs fairly high capital costs to open new stores: lease costs, store build-out and inventory. The cost to open each store is calculated to be \$650,000 per store and the President has just told several analysts' tracking the company, on a conference call, that the company