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Working Capital Management

Net Working Capital

2010 and 2011 Balance Sheets for Nabors, Inc ($ millions) 2010 2011 2010 2011 Cash $310 $405 Accounts Payable $2,720 $2,570 Accounts Rec. 2640 3,055 Notes Payable 100

Accounting KING CORPORATION Compute the following: a. Working capital b. Current ratio c. Acid-test ratio d. Cash ratio e. Days' sales in receivables f. Accounts receivable turnover in days g. Days'

KING CORPORATION Partial Balance Sheet December 31,2009 Assets Current assets: Cash $33,493 Marketable securities $215,147 Trade receivables, less allowance of $6,000 $255,000 Inventories, LIFO $523,000 Prepaid expenses $26,180 Total current assets $1,052,820 Liabilities Current liabilities Trade accounts paya

Best source of equity capital

Christine Hernandez is in the process of launching a restaurant. She has never owned a restaurant before, but she has worked in two of the best restaurants in town. Starting out as a hostess, Hernandez developed a special knack for the business and quickly worked her way up to manager. Her 18 years of experience have given her a

Capital Market Instruments: How They Are Used

Need help with the following questions involving the Essentials of Investments: What are capital market instruments? How are they used? Which is most important? Explain you answer. What is an asset? How are asset classes selected? What factors affect the selection? Assume economic forecasts predict falling gross dome

Capital Markets and Investment Banking Process Paper

See the attached file. Analyze the investment banking process, and address the following: Describe the investment banking process for an IPO. Describe factors that must be considered when selecting among asset classes for an investment portfolio. Describe capital market instruments used in portfolio construction.

LIFO

Assume that during the first year of a corporation's operation, there were numerous purchases of identical items of merchandise. However, there was no change during the year in the prices paid for this merchandise. Under these special circumstances, how would the financial statements be affected by the choice between the FIFO an

The article I found talks about insider trading and how the Senate passed bill that will ban insider trading for for Capital Hill. Some have argued that Congress does not have to follow traditional insider trading rules and are allowed to trade as they see fit. Others say that nobody should be allowed insider trading and that it doesn't matter if you are directly involved in the company or an investor. It appears to me that the approximately 50 members of Congress who have done insider trading feel they are above the law. The only reason why they knew what they did is because Congress was working on legislation that would affect their investment so these people sold their stocks and bonds and investments before the value decreased. The legislation that the Senate passed is being called the Stock Act (Stop Trading on Congressional Knowledge Act). What has made this bill popular and able to pass was the public outrage that has occurred because of some members of Congress doing insider trading. In the end sometimes its better to pass a bill later than not at all. If this legislation doesn't pass the House of Representatives then Capital may be able to keep doing whatever they want. I think what upsets me the most about this article is that certain members of Congress feel that they can manipulate the rules so that it doesn't apply to them, just us working class people. www.wsj.com

Adverse Selection: Senate Passes Insider-Trading Ban The article I found talks about insider trading and how the Senate passed bill that will ban insider trading for for Capital Hill. Some have argued that Congress does not have to follow traditional insider trading rules and are allowed to trade as they see fit. Others say

Current and Noncurrent Assets are Defined and Compared

Prepare a paper comparing and contrasting current and noncurrent assets. In your paper, address the following: - What are current assets? - What are noncurrent assets? - What differs between current and noncurrent assets? - What is the order of liquidity? - How does the order of liquidity apply to the balance sheet?

Financial Policy & Strategy: Working Capital Management Strategy

What is a good working capital-management strategy that would free up enough money to keep a business stable and on their feet if they were having a hard time getting the cash to pay bills for the business. Accounts receivable, inventory, accounts payable are the three accounts, and what strategy would work? What is a pro and a

Financial Management

"What is the after tax cost of debt on a $500,000 loan given a 7% interest rate and 35% tax bracket?" Answer "$22,750 " 2.45% 4.55% "$35,000 You are considering a new investment. The rate on T-bills is 3.3% and the return on the S&P 500 is 10.5%. You have measured the non-diversifiable risk of the investment you are con

Rate of Return, Working Capital, and Current Ratio

Please review the attachment for the complete problem description. Reynolds Equipment financing policies: rate of return, working capital, current ratio Reynolds Equipment Company is investing the use of various combinations of short-term and long-term debt in financing its assets. Assume that the company has decided to em

Risk Return, and the Oportunity Cost of Capital

See attached. YEAR STOCK MARKET RETURN T-BILL RETURN 2003 31.64 1.02 2004 12.62 1.2 2005 6.38 2.98 2006 15.77 4.8 2007 5.62 4.66 13. Risk Premiums and Discount Rates. Top hedge fund manager Diana Sauros believes that a a stock with the same market risk as the S and P 500 will sell at year-end at a price of $50. Th

Calculate net working capital for Smith Motors

Smith Motors reports the following account balances: inventory of $33,100, equipment of $84,400, accounts payable of $16,900, cash of $5,000, and accounts receivable of $22,600. How much does the firm have in net working capital? $38,800 $43,800 $55,700 $67,500 $72,600

How Customer Relationships Are Sources of Value

How might customer relationships be sources of value? What metrics might be particularly important in assessing an organization's customer capital or the value of its customer relationships? Can you provide examples where one can see a close relationship between market value and the changing assessments of the quality of the cus

Consolidation, redemption, complete liquidation, capital loss

1. Condor Corporation pays $950,000 for 100% of the stock in Dove Corporation. Dove has a basis of $800,000 in its assets and E & P of $220,000. If Condor liquidates Dove and makes no special election, what are the tax consequences to Condor and to Dove? 2. The gross estate of Tanya, decedent, includes stock of Finch Corporat

Raising Capital for a Small Business

In a small business what are other means of raising capital and justify why you would use these means instead of others (omit using your own money as an option).

Working Capital Management

Part a) Jackson Electronics inventories computer chips that cost $30.00 each. Inventory carrying cost is approximately 20% of value. It costs $40 to place, process, and receive an order. The firm uses 3,000 chips a year. What ordering quantity minimizes the sum of ordering and carrying cost? Part b) Mathey, Inc. uses 4,000 ci

Working Capital Policies Alternatives

Discuss at least three alternative working capital policies that reduce future difficulties, and make a recommendation on which policy Lawrence Sports should follow. Your recommendation must include: Disclose LS bank balances at borrowing balances at the end of the simulation An evaluation of the risk associated with the r

T.P. Jarmon Company: P 3-8 p77-77 Working capital, debt ratio, cash flows

Please see attached file. A) How much is the firm's net working capital and what is the debt ratio? B) Complete a statement of cash flows for the period. Interpret your results. C) Compute the changes in the balance sheets from 2009 to 2010. What do you learn about T.P Jarmon from these computations? How do these numbers r

Ewa, the owner of Finest Enterprises, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization? Ewa wants to obtain additional capital to expand Finest, but she does not want to lose control of the firm. As a sole proprietor, what is her best option to attain these goals?

Ewa, the owner of Finest Enterprises, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization? Ewa wants to obtain additional capital to expand Finest, but she does not want to lose control of the firm. As a sole proprietor, what is her best option to attain t

Working capital managements, financial planning, discounts, APR

- Discuss the avenues to improve working capital management. Discuss the components of working capital and their effects on the firm's value. - Discuss the importance and main avenues of cash management. Elaborate on the company's cash cycle, and how it differs from its operating cycle. - List and discuss the main object

The Impact of Changes in Working Capital to Cash Flow

Axtel retired stock for $1,000,000 and paid a dividend of $1,727,000. Depreciation for the year was $1,166,000. Construct a Statement of Cash Flows for Axtel for 2001. (Hint: Retiring stock means buying it back from shareholders. Assume the purchase was made at book value, and treat it like a negative sale of stock). SOLUTION

Change-in-Net-Working-Capital-Calculation

Samuels Manufacturing is considering the purchase of a new machine to replace one they feel is obsolete. The firm has total current assets of $920,000 and total current liabilities of $640,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability