• Explain how working capital represents the assets that are
needed to carry out the day-to-day...
• Explain how working capital represents the assets that are
needed to carry out the day-to-day operation and how working
capital can act as a source of financing or increase the need for
financing.
Working capital investment
Prestopino Corporation produces motorcycle batteries. Prestopino
turns out 1,600 batteries a day at a cost of $4 per battery for
materials and labor. It takes the firm 24 days to convert raw
materials into a battery. Prestopino allows its customers 40 days
in which to pay for the batteries, and the firm generally pays its
suppliers in 30 days. Assume 365 days in year for your
calculations.
What is the length of Prestopino's cash conversion cycle? Round...
Working Capital Investment
Pasha Corporation produces motorcycle batteries. Pasha turns out
1,400 batteries a day at a cost of $7 per battery for materials and
labor. It takes the firm 22 days to convert raw materials into a
battery. Pasha allows its customers 40 days in which to pay for the
batteries, and the firm generally pays its suppliers in 30
days.
a. What is the length of Pasha’s cash conversion cycle?
b. At a steady state in which Pasha...
3. Current assets. Define current assets without using the word
“asset.”
c. Explain what working capital is and how it is computed.
d. What are intangible assets?
Working capital measures how much in liquid assets a company
has. Firms deciding how to finance their current assets have to
choose among three primary policies: conservative, moderate, and
aggressive. Explain all three of these policies.
A corporation has non-capital loss carry forwards and net
capital loss carry forwards. How does management decide which of
these carry forwards should be deducted first?
(NEED ANSWER IN DETAIL)
A firm has net working capital of $8,000 and current assets of
$12,000. Total assets equal $30,000. What is the book value of the
equities for the firm if long-term debt is $7,500?
$18,500
$14,500
$10,500
$18,900
A firms has net working capital of $250,500, current assets of
$487,200, total assets of $1,711,000, , and long-term debt of
$350,000. What is the total debt ratio?Group of answer choices.34.20.39.28.14