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    Working Capital Management

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    Working Capital and Current Ratio

    On June 30, 2006, Victor Company's total current assets were $160,000 and its total current liabilities were $100,000. On July 1, 2006, Victor issued a short-term note to a bank for $25,000 cash. A. Compute Victor's working capital before and after issuing the note. B. Compute Victor's current ratio before and after issui

    Global Capital Investment - Less developed Emerging

    Q1) Major multinational organizations such as Acme (some of which are listed below) attempt to track the relative movements and magnitudes of global capital investment. Using these web pages and others you may find, prepare a 5-6 paragraph executive briefing on the question of whether capital generated in the industrialized coun

    current value of operations based on an overall cost of capital

    A company forecasts free cash flows in one year to be (negative) -$10 Million and free cash flow in two years to be $20 Million. After the second year, free cash flow will grow at a constant rate of 4% per year for the foreseeable future. If the overall cost of capital is 14%, what is the current value of the operations?

    Different types of firms capital requirements

    How are, or, how can different types of firms' capital requirements be altered by external events? You will have to take into account different industries and types of companies; Are their specific lessons in dealing with those changing capital requirements that may be able to take home to utilize on the domestic front?

    Working Capital

    How do we "manage" the levels of working capital required in a business?

    Best Mix of Capital

    ACME Corp is a publicly traded firm listed on the NASDAQ. Its current common stock price is 10 dollars per share. The company currently has 75 million dollars in sales. It expects sales to grow at 3 percent a year for the next several years. The company's current fixed costs are 50 million dollars. The federal tax rate is 4

    What is all the equity cost of capital you are able to calculate

    A U.S multinational corporation is considering a new project in Poland, which requires an initial investment of 700 million zloty. The project is expected to have profits of 400 million zloty in the first year of operations and 600 million zloty in the second year of operations. The current exchange rate is $0.35/zloty. The risk

    Capital Market Theory/Risk

    1. These are the hypothetical returns during the past even years on a market portfolio of common stocks and a portfolio of Treasury bills. YEAR COMMON TREASURY BILLS STOCKS BILL -7

    Stock/Capital Gain/Percentage Return

    One year ago, Mr. Seth Cohen invested 10.400 dollars in 200 shares of First Industries Inc. stock and just received a dividend of 600$. Today he sold the 200 shares at 54.25$ per share. a. What was his capital gain? b. What was his total dollar return? c. What was his percentage return? d. What was the stocks dividend

    Importance of Working Capital Management

    Explain why working capital management has become increasingly important in the current business environment. Provide at least two examples of organizations that have good working capital management policies, and two examples of organizations with poor working capital management policies. Be sure to explain why the policies of y

    Source of Capital; Owners Equity

    During its fiscal year, a company had outstanding 600,000 shares of $6.50 preferred stock and 2,000,000 shares of common stock. The company's net income for the year was $19,550,000. The company also had granted stock options to employees for 200,000 shares of common stock during the fiscal year was $20 per share. a. Calculat

    Sources of Capital; Present Value Concept

    For each of the following situations, the present value concept should be applied; 1. Your wealthy aunt has just established a trust fund for you that will accumulate to a total of $100,000 in 12 years. Interest on the trust fund is compounded annually at an 8% interest rate. How much is your trust fund today? 2. On Ja

    Working Capital and Financial Environment of Microsoft and Novell

    I need to describe and quantify the elements of working capital for the 2006 fiscal year for both Microsoft and Novell. I also need to explain the functions of intermediaries and financial regulatory bodies with these companies and determine the importance of control programs and effective internal control techniques to theses o

    Working Capital Management with Transactions

    Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (i) cash and (ii) net working capital: a. Paying out a $2 million cash dividend. b. A customer paying a $2,500 bill resulting from a previous sale. c. Paying $5,000 previously owed to one of its suppliers. d. Borrowi

    Working Capital Management

    (1). Indicate by a (+), (-), or (0) whether each of the following events would probably cause accounts receivable, sales, and profits to increase, decrease, or be affected in an indeterminate manner A/R Sales Profits The firm tightens its

    Working Capital Management, Credit and Policies

    1. Why is some trade credit called free while other credit is called costly? If a firm buys on terms on 2/10,net 30, pays at the end of the 30th day, and typically shows $300,000 of accounts payable on its balance sheet, would the entire $300,000 be free credit? Would it be costly credit, or would some be free and some costly?.

    Journalize stock transactions, post, and prepare paid in capital - Hayslett Corp.

    Hayslett Corp was organized on Jan. 1,2006. It is authorized to issue 20,000 shares of 6%m $50 par value preferred stock, and 500,000 shares of no par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year. jan 10-issued 100,000 shares of common stock for cash a

    Current Asset Management - Mountain Home Systems

    Mountain Home Systems, Inc. is a well-known and reputable supplier of integrated circuits to manufacturers of telecommunications devices. The firm is currently debating whether to expand its sales to car-telephone manufacturers. While the firm expects an extra $2 million in sales if it enters this market, it also knows that 15

    What will be the total return if the available capital is reduced by 2 units?

    Please help with the following problem. Eight units of capital can be invested in three activities with the return from each activity given in the accompanying table. Determine the capital allocation to each activity that will maximize the total return. What will be the total return if the available capital is reduced by 2

    Financing Working Capital

    Should an organization pay its bills on time? Why or why not? Under what circumstances should bank or collateralized loans be procured to pay these liabilities? Why is inventory necessary? Why is it important to turn inventory as soon as possible? How could a company improve its inventory turns?

    Calculating cost of capital and rate of return

    The Ogden Corporation makes an investment of $ 25,000, which yields the following cash flow: Year Cash Flow 1 $ 5,000 2 $ 5,000 3 $ 8,000 4 $ 9,000 5 $10,000 1. What is the present value with a 9% discount rate (cost of capital)? 2. What is the inter

    Capital Investment Analysis

    24-1 The following data are accumulated by Environmental Services Inc. in evaluating two competring capital investment proposals: Testing Equip Centrifuge Amount of investment $42,000 $56,000 Useful life 4 years 5 years Estimated residual value -0- -0- Estimated tota

    Contributed Capital Problems

    Problem 1 Valenti Corporation had 5,000 shares of $100 par value, 9 percent cumulative preferred stock and 30,000 shares of $10 par value common stock outstanding during each of its first four years of operation. The following amounts of cash dividends were paid during the years indicated: 20x1, $0; 20x2, $80,000; 20x3, $220,

    Additional Funds Needed: Raising Capital Using the AFN Formula

    My company recently reported sales of $100 million, and net income equal to $5 million. My company has $70 million in total assets. Over the next year, I'm forecasting a 20 percent increase in sales. Since my company is at full capacity, its assets must increase in proportion to sales. I estimate that if sales increase 20 percen

    Venture Capital

    Pickwick Electronics is a new high-tech company financed entirely by 1 million ordinary shares, all of which are owned by George Pickwick. The firm needs to raise $1 million now for stage 1 and, assuming all goes well, a further $1 million at the end of 5 years for stage 2. First Cookham Venture Partners is considering two p

    Venture Capital: Pickwick Electronics

    Venture Capital. Pickwick Electronics is a new high-tech company financed entirely by 1 million ordinary shares, all of which are owned by George Pickwick. The firm needs to raise $1 million now for stage 1 and, assuming all goes well, a further $1 million at the end of 5 years for stage 2. First Cookham Venture Partners