The Booth Company's sales are forecasted to increase from $1,000 in 2007 to $2,000 in 2008. Here is the balance sheet for December 31, 2007.
Cash 100 Accts Payable 50
Acc Rec 200 Notes Payable 150
Inventory READ MORE »
A company has two major businesses that it operates. One business manufactures and sells unicycles for commercial use in circuses, etc. (total sales of $150M), and the other sells bicycles to the public (total sales of $20M). The unicycle business occupies 75,000 square feet of the manufacturing w READ MORE »
You are the general manager of a firm that manufactures personal computers. Due to a soft economy, demand for PCs has dropped 50 percent from the previous year. The sales manager of your company has identified only one potential client, who has received several quotes for 10,000 new PCs. Accordin READ MORE »
Cash Conversion Cycle. What effect will the following events have on the cash conversion cycle?
a) Higher financing rates induce the firm to reduce its level of inventory.
b) The firm obtains a new line of credit that enables it to avoid stretching payables to its suppliers.
c) The firm factors READ MORE »
Techware Incorporated is considering the introduction of two new software products to the market. In particular, the company has four options regarding these two proposed products: introduce neither product, introduce product 1 only, introduce product 2 only, or introduce both products. Research READ MORE »