the sales are expected to reach ＄10 million in 2009 and continue at the ＄10 million level through 2013. The cost of goods sold would be 75% of revenues and SG&A (Selling‚ General and Administrative Expenses) would be 5% of revenues‚ the working capital in this case would equal 10% of incremental sales for the year‚ the incremental
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Chapter 12 Analyzing Project Cash Flows 12-1. Captain’s Cereal’s new Crunch Stuff n’ Stars is expected to generate $25M in sales. However‚ 20% of that will be cannibalized from the original cereal‚ Crunch Stuff. Thus‚ the sales amount that should be allocated to the new Stars version is only (100% − 20%) of the $25M‚ or $20M. This is an example of finding an “incremental” cash flow. As shown in equation 12-1‚ we only want to consider what is different if we go ahead with the project: incremental
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foundational corporate finance. 3. Which of the following correctly completes the next sentence? The value of any asset is the present value of all future a. 0 profits it is expected to provide b. 0 revenue it is expected to provide c. 0 net working capital it is expected to provide d. 0 cash flows it is expected to provide Objective: Compare and contrast the market value of an asset or liability from the book value. 4. Original maturity refers to a. 0 a technical accounting term that encompasses
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for the reference who the key managers/owners are and what relevant expertise and background they bring to the business; include synopsis (background‚ relevant employment and professional experience‚ significant accomplishments‚ and educational background of each member); detail resumes may be provided in the appendix describe non-management positions‚ responsibilities/qualifications‚ personnel policies outside advisers (board of directors; legal council; accountants; bankers; consultant# your
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In intention to discover the relationship between efficient working capital management and firm’s profitability(Shin & Soenen‚ 1998) used net-trade cycle (NTC) as a measure of working capital management. NTC is basically equal to the CCC whereby all three components are expressed as a percentage of sales. The reason by using NTC because it can be an easy device to estimate for additional financing needs with regard to working capital expressed as a function of the projected sales growth. This relationship
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deteriorated from 2011 to 2012. Payables turnover An activity ratio calculated as revenue divided by payables. Rio Tinto PLC’s payables turnover declined from 2010 to 2011 and from 2011 to 2012. Working capital turnover An activity ratio calculated as revenue divided by working capital. Rio Tinto PLC’s working capital turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012. Average inventory processing period An activity ratio equal to the number of days in the period divided
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AND DATA INTERPRETATION MASTER TABLE FOR WORKING CAPITAL: Particulars 2008-09 2009-10 2010-11 2011-12 Cash 26641162 55642473 138100028 161490169 Raw-Materials 518716903 2590738053 2733309086 3670256062 Work-in-progress 14357756 212436011 593120762 6448792 Finished-Goods 387209501 765102729 1581471825 1093748619 Debtors 43076543 13796139 89900304 83813855 TOTAL 990001865 3637715405 5135902005 5015757497 Statement showing working capital on 2009 INTERPRETATION
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Dell’s Working Capital B.B.Chakrabarti Professor of Finance IIM Calcutta The Questions How was Dell’s working capital policy a competitive advantage? How did Dell fund its 52% growth in 1996? The Questions Assuming Dell sales will grow 50% in 1997‚ how might the company fund this growth internally? How much would working capital need to be reduced and / or profit margin increased? What steps do you recommend the company take? How would your answer to the above question
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The area of credit appraisal and assessment is very vast and each new account poses new challenges and tests our skill. Whenever a proposal is received‚ what does a banker looks for in it? Answer to this question is not only very detailed but also very complex. Earlier speakers might have already covered the finer aspects of the project/credit appraisal i.e. from the selection of the project to preparation of projected financials and evaluation of the project from the angle of acceptability‚ more
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HelloALLLLL Monday‚ March 28‚ 2011 HelloAll (15-1) Net working capital F S Answer: b EASY 1. Net working capital‚ defined as current assets minus the sum of payables and accruals‚ is equal to the current ratio minus the quick ratio. a. True b. False (15-1) Net working capital F S Answer: b EASY 2. Net working capital is defined as current assets divided by current liabilities. a. True b. False (15-1) Working capital F S Answer: b EASY 3. An increase in any current asset must be
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