Analysis of a Financial Institution
Not what you're looking for?
Please see attachment for questions.
Question 1:
Cash cycle is simply the amount of time, usually expressed in days, for a company, say a manufacturer, converts its raw materials to cash. This means that the cycle encompasses the period it takes to convert raw materials to finished goods to sales, the period it takes to collect credit sales less the period it takes the company to pay off its trade payables.
Question 2:
This article published by the International Monetary Fund identifies and discusses the different financial markets in Namibia.
Purchase this Solution
Solution Summary
The following posting helps with a problem regarding the analysis of a financial institution.
Solution Preview
Below is your study guide. Please note that for it to be effective, I didn't provide the final answer. As an expert, I have created a tutorial for you.
Question 1:
Cash cycle is simply the amount of time, usually expressed in days, for a company, say a manufacturer, converts its raw materials to cash. This means that the cycle encompasses the period it takes to convert raw materials to finished goods to sales, the period it takes to collect credit sales less the period it takes the company to pay off its trade payables.
Formula = Inventory conversion + Receivables conversion - Payables conversion
Inventory conversion = Average inventory/(Cost of goods sold/365 days)
Receivables conversion = Average accounts receivable /(Credit sales/365 days)
Payables conversion = Average accounts payable/(Purchases/365 days)
Note that sometimes 360 days is used instead of 365 days.
For this particular problem, use the amount specified as debtors and creditors for average receivables and payables, respectively.
Cash turnover rate measures ...
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Introduction to Finance
This quiz test introductory finance topics.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking