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Working Capital Management

Working capital and financial decisions - Multiple Choice

Which of the following techniques allows explicit consideration of more than one possible outcome? a. Expected value b. Least-squares regression c. Present value d. Operating leverage An aggressive working capital policy would have which of the following characteristics? a. A high ratio of short-term debt to long-te

10 Accounting Questions: ratios, working capital, financial analysis

Please see attachment. 11. Konstanz Company paid $1,200 in sales commissions expense. What impact will this transaction have on working capital? (Points: 2) Increase it Decrease it No impact Not enough information is provided to answer the question. 12. The following balance sheet in

Computing Stock

1. Goodwill Corp. has a before-tax cost of debt of 11% and marginal tax rate of 37%. Compute the after tax cost of debt? 2. Goodwill Corp. issued preferred stock that has been paying annual dividends of $3.00 and the price of the preferred stock is $34 a share. Compute the cost of Robin's Nest Enterprises preferred stock:

Warner Company: Income Statement and Balance Sheet. Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of items. a. What are the firm's net working capital, operating working capital, and debt ratio. b. Complete a common-sized income statement and a common-sized balance sheet. Interpret your findings.

Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of items. See Word doc attached. a. What are the firm's net working capital, operating working capital, and debt ratio b. Complete a common-sized income statement and a common-sized balance sheet. Interpret your findings

Working Capital Management Questions

What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons? What are the four elements of a firm's credit policy? To what extent can firms set their own credit policies as opposed to having to accept policies that are dictated

Working Capital Case Study for the McDonald's Corporation

Working Capital Case Study Obtain at least two years of financial information pertaining to the Mcdonald's Corporation from its most recent annual report (10-K). Then, use the information contained in the annual report to calculate the following: 1) Inventory period 2) Accounts receivables period 3) Accounts pay

Working Capital Management

Firms with a high degree of operating leverage are A. easily capable of surviving large changes in sales volume B. usually trading off lower levels of risk for higher profits. C. significantly affected by changes in interest rates. D. trading off higher fixed costs for lower per-unit variable costs. Which of the followi

Working capital strategies for Micrososft Inc.

Review Microsofts organization's most recent 2-3 years financial reports (balance sheet, statements of cash flow, managements comments, and footnotes to the financial statements) to explain how each of the current asset and liability accounts have affected the cash management strategies. Please provide references. Thank you!

Multiple Choice-Working Capital: Cold Chiller Corporation, La Forks of Destiny, Inc.- How much does CCC have invested in its cash conversion cycle assuming a 365-day year? The average collection period for La Forks is ---------

Cold Chiller Corporation (CCC) has annual sales of $10 million, cost of goods sold of 60 percent, average age of inventory of 60 days, average collection period of 35 days, average payment period of 40 days, and purchases that are 50 percent of cost of goods sold. How much does CCC have invested in its cash conversion cycle assu

Organizational Working Capital

How would you define working capital? What could happen if an organization neglected to manage its working capital? What working capital techniques would you recommend for your organization? Why?

Dividend/Proforma Income Statement/Net Profit After Tax/Net Working Capital

1. Colonial Furniture's net profits before taxes for 2005 totaled $354,000. The company's total retained earnings were $338,000 for 2004 year end and $389,000 for 2005 year end. Colonial is subject to a 26 percent tax rate. How large was the cash dividend declared by Colonial Furniture in 2005? 2. In an effort to analyze Cloc

Networking Capital

Trying to solve for the networking capital Total Assets $900 Fixed Assets 600 Long-term 500 short-term 200

Current Assests

$300 inventory 600 fixed assets 200 accounts receivable 100 accounts payable 50 cash Looking for the total amount of the current assests

Cash Flows and Working Capital

A house painting business had revenues of $16,000 and expenses of $9,000. There were no depreciation expenses. However, the business reported the following changes in working capital. Beginning End Accounts receivable $1,200 $4,500 Accounts payable 7

Lawrence Sports Working Capital Policy

Create a working capital policy for Lawrence Sports that addresses their cash management needs for the long term. a. Compare Lawrence Sports' use of cash budgeting to the purpose of cash budgeting. Describe the weaknesses in Lawrence Sports' existing working capital policies that lead to their cash flow problem. b. The poli

Working Capital Policies: Scott Equipment Organization

Scott Equipment Organization is investigating the use of various combinations of short-term and long-term debt in financing its assets. Assume that the organization has decided to employ $30 million in current assets, along with $35 million in fixed assets, in its operations next year. Given the level of current assets, anticipa

Factoring of Receiveables (Working Capital)

I need to know the answers to these questions. 1. Explain the advantages and disadvantages to the firm of factoring its receivables. What is the difference between pledging and factoring? Which of these two is cheaper for the company? 2. What main points of analysis will a bank perform on a loan application? 3. Is an

Net Working Capital

Determine the change in net working capital that appears warranted for the following proposed project: Inventory levels will increase 20% from their current value of $500,000; cash will increase by $25,000; wage accruals will increase by $60,000; machinery will increase by $75,000; accounts receivable -- because of a new collect

Financing Technique and Management Teams

Describe a short term financing technique and/or instrument with which you are familiar. How are they used in practice? Using a company with which you are familiar, briefly describe in general terms how management teams might manage working capital by focusing operational efforts on a current asset or current liability.

Most Correct Statement

Which of the following statements is most correct? a. In the weighted average cost of capital calculation, we must adjust the cost of preferred stock for the tax exclusion of 70 percent of dividend income. b. We ideally would like to use historical measures of the component costs from prior financings in estimating the app

Equity Capital

Identify informal and formal investment sources of equity capital. Discuss how venture capital investors make decisions.

Fixed and WC investment drivers

What factors are likely to drive a firm's outlays for new capital (such as plant, property, and equipment) and for working capital (such as receivables and inventory)? What ratios would you use to help generate forecasts of these outlays?

Long Term Capital Management

Considering the executive team, what were the problems with team inputs, processes and structures that contributed to the downfall of Long Term Capital Management? Were the members of LTCM simply unlucky (the victim of forces beyond its control) or were there more systematic, predictable (and, ultimately, avoidable) reasons for

Stockholders Equity and Paid-In Capital for Edis Corporation

Presented below is information related to Edis Corporation: Common Stock, $1 par $4,300,000 Paid-in Capital in Excess of Par?Common Stock 550,000 Preferred 8 1/2% Stock, $50 par 2,000,000 Paid-in Capital in Excess of Par?Preferred Stock 400,000 Retained Earnings