Problem 16-1 (Cash Management) Williams & Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm’s inventory level and increase the firm’s inventory turnover ratio to 5 while maintaining the same level of sales‚ how much cash will be freed up? Inventory = Sales / Inventory Turnover Ratio Inventory = $10 million / 2 = $5 Million Inventory = Sales / Inventory Turnover
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TUTORIAL1 WITH INFORMATION TO SOLUTIONS 1. For most products‚ higher prices result in a decreased demand‚ whereas lower prices result in an increased demand. Let d = annual demand for a product in units p = price per unit Assume that firm accepts the following price-demand relationship as being realistic: d = 800 – 10p where p must be between $ 20 and $70. a. How many units can the firm sell at the $ 20 per-unit price? At the $ 70 per-unit price?
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Weighted Average Cost of Capital: Home Depot‚ Inc. Second Project FIN515 – Managerial Finance Instructor: Prof. David Eichenholtz Group: John Okogeri Fiona Harrison-Butts Haider Chaudhry Mia O’Blenis Christopher Cardenas Date: April 5‚ 2015 TABLE OF CONTENTS Introduction 3 company profile 3 WACC calculation 4 explanation of calculation/results 5 Limiting factors 5 Conclusion 6 references 7 Weighted Cost of Capital: Home Depot‚ Inc. Introduction The purpose of this project
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Week 1: Introduction - Class Discussion Discussion The purpose of this discussion board is to provide you with a forum to discuss your newly discovered production and operations management concepts in light of current issues and real world situations with others in the class. In essence‚ it is a practice ground for ensuring that your reasoning and foundation of these concepts are secure. This portion of the course requires you to interact with your fellow classmates. After completing the textbook
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Assignment EECS 401 Due on January 12‚ 2007 PROBLEM 1 (15 points) Fully explain your answers to the following questions. (a) If events A and B are mutually exclusive and collectively exhaustive‚ are Ac and Bc mutually exclusive? Solution Ac ∩ Bc = (A ∪ B)c = Ωc = ∅. Thus the events Ac and Bc are mutually exclusive. (b) If events A and B are mutually exclusive but not collectively exhaustive‚ are Ac and Bc collectively exhaustive? Solution Let C = (Ac ∪ Bc )c ‚ that is the part that is not contained
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LEARNING ACTIVITY WORKSHEET - Week One Develop a detailed outline of your first main point. (For assistance with your writing skills‚ check out the Ashford Writing Center at https://awc.ashford.edu/essay-dev-essay-structure.html.) 1. The Constitution: a. Provide a topic sentence that briefly describes one strength and one weakness of the U.S. Constitution. The U.S. Constitution has its strengths and weaknesses. What makes the US Constitution great is that it’s solely based upon the will of the people
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Assignment 1 You are the chief analyst to monitor an eastern city’s government consumption expenditures. Using the city’s quarterly government consumption data {yt} measured in billion dollars from 2007-Q1 to 2014-Q3‚ you are trying to estimate the linear trend model: yt = + t + ut‚ where ut ~ N(0‚ ). (A) Supposing t = 1 for the starting quarter (i.e.‚ 2007-Q1)‚ then what is t for 2014-Q3? (1 mark) (B) Suppose your OLS (ordinary least squares) estimates for the trend model are = 1.62
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ISOM 111 L11‚ Fall 2010 1 Homework 1 Solutions I. An insurance agency is examining the dollar amount of claims from clients who have homeowners insurance. For the 900 people who filed claims‚ the five-number summary of the amount is: ($8800‚ $8850‚ $8900‚ $9100‚ $9940). (a) Would the histogram displaying the data for the 900 claims be nearly bell-shaped? If so‚ explain how the summary indicates this. If not‚ determine if the data is skewed left or skewed right‚ and explain how the summary
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160.00 164.90 324.90 623.60 40.80 $ 6.36 $ 10 4.08 $ $ $ $ $ $ $ a. If operating capital as of 12/31/2010 is $502.2 million‚ what is the free cash flow for 12/31/2011? (in millions) 65.16 134.90 532.40 30.20 34.96 NOPAT = EBIT (1-Tax Rate) NOWC =Operating Current assets - Operating Current Liabilities Total net operating capital = NOWC + Operating long-term assets Net investment in operting capital = NOC 2011 -
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Week 1 Assignment Armando Samia migosamia@yahoo.com 949 600 3240 Entrepreneurial Finance January 13‚ 2013 1.[Financing Concepts] The following ventures are at different stages in their life cycles. Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing. A. Phil Young‚ founder of Pedal Pushers‚ has an idea for a pedal replacement for children’s
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