In: Economics
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CASH CONVERSION CYCLE Parramore Corp has $12 million of sales, $2 million of inventories, $4 million of receivables, and $2 million of payables. Its cost of goods sold is 80% of sales, and it finances working capital with bank loans at an 9% rate. Assume 365 days in year for your calculations. Do not round intermediate steps. What is Parramore's cash conversion cycle (CCC)? Do not round
intermediate calculations. Round your answer to two decimal
places. If Parramore could lower its inventories and
receivables by 11% each and increase its payables by 11%, all
without affecting sales or cost of goods sold, what would be the
new CCC? Do not round intermediate calculations. Round your answer
to two decimal places. How much cash would be freed up, if Parramore could
lower its inventories and receivables by 11% each and
increase its payables by 11%, all without affecting sales or cost
of goods sold? Do not round intermediate calculations. Round your
answer to the nearest cent. Write out your answer completely. For
Example, 13.2 million should be entered as 13,200,000. By how much would pretax profits change, if Parramore could
lower its inventories and receivables by 11% each and
increase its payables by 11%, all without affecting sales or cost
of goods sold? Do not round intermediate calculations. Round your
answer to the nearest cent. Write out your answer completely. For
Example, 13.2 million should be entered as 13,200,000. |
2.
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Cash Conversion Cycle
RECEIVABLES INVESTMENT Leyton Lumber Company has sales of $12 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $2.4 million. Assume 365 days in year for your calculations. What is Leyton's DSO? Round your answer to two decimal
places. What would DSO be if all customers paid on time? Round your
answer to two decimal places. How much capital would be released if Leyton could take actions
that led to on-time payments? Round your answer to the nearest
cent. Write out your answer completely. For Example, 13.2 million
should be entered as 13,200,000. |
3.
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Accounts Payable (Trade Credit) Click here to read the eBook: Bank Loans Problem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-Through COST OF TRADE CREDIT AND BANK LOAN Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 35; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations. If Lancaster decides to forgo discounts, how much additional
credit could it obtain? Write out your answer completely. For
example, 5 million should be entered as 5,000,000. Round your
answer to the nearest cent. What would be the nominal cost of that credit? Do not round
intermediate calculations. Round your answer to two decimal
places. What would be the effective cost of that credit? Do not round
intermediate calculations. Round your answer to two decimal
places. If the company could get the funds from a bank at a rate of 11%,
interest paid monthly, based on a 365-day year, what would be the
effective cost of the bank loan? Do not round intermediate
calculations. Round your answer to two decimal places. Should Lancaster use bank debt or additional trade credit? |
4.
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Cash Conversion Cycle Click here to read the eBook: Accounts Receivable WORKING CAPITAL INVESTMENT Pasha Corporation produces motorcycle batteries. Pasha turns out 1,100 batteries a day at a cost of $7 per battery for materials and labor. It takes the firm 24 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. Assume 365 days in year for your calculations. What is the length of Pasha's cash conversion cycle? Round your
answer to two decimal places. At a steady state in which Pasha produces 1,100 batteries a day,
what amount of working capital must it finance? Round your answer
to the nearest dollar. By what amount could Pasha reduce its working capital financing
needs if it was able to stretch its payables deferral period to 39
days? Round your answer to the nearest dollar. Pasha's management is trying to analyze the effect of a proposed new production process on its working capital investment. The new production process would allow Pasha to decrease its inventory conversion period to 15 days and to increase its daily production to 2,100 batteries. However, the new process would cause the cost of materials and labor to increase to $11. Assuming the change does not affect the average collection period (40 days) or the payables deferral period (30 days), what will be the length of its cash conversion cycle and its working capital financing requirement if the new production process is implemented? Round your answers to two decimal places.
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In: Finance
Question:
Stephanie runs a small retail business in a poor rural community. She has 4 employees, 2 of them part time, all of them older adults who have grown up in the area. She has had only modest success so she has never been able to afford to provide health insurance for her employees. None of them have private insurance or Medicaid -- nor do they have primary care doctors. They rely on a small local urgent care center or the emergency room at the nearest hospital which is in the next county. All of this may be changing. Stephanie has been invited into a small business consortium where many small businesses are coming together to negotiate collective terms of agreement to buy insurance at a reduced rate from Blue Cross Blue Shield. It would most likely be a managed care plan - either a PPO or an HMO. Stephanie is trying to consider all the pros and cons in order to make her decision.
By Day 3 of Week 7
Post your initial response to the case study :
In: Nursing
WordBoss, Inc. uses 4 word processors and 2 desk-top computers to generate reports. The marginal product of a word processor is 50 pages per hour and the marginal product of a desk-top computer is 500 pages per hour.
If the rental price of a word processor is $1 per hour and the rental price of a desk-top computer is $10 per hour, is WordBoss utilizing word processors and desk-top computers efficiently?
If the price of each page produced is $0.10, what is the value marginal product of a word processor?
If the price of each page produced is $0.10, what is the value marginal product of a desk-top computer?
If the rental price of a desk-top computer decreases to $5 per hour, how should WordBoss respond?
In: Economics
SUBJECT: SPECIAL NEEDS 2 ( CONTINUE CARE ASSISTANT)
Que 4. Treatment for addiction has many aspects.
Describe care provider characteristics that enhance recovery from
addiction.
Que 5. Provide an example of each of the following abused
substances. Describe how it affects the body, and how is it used.
a.) Depressant
b.) Stimulant
c.) Narcotic
d.) Hallucinogen
e.) Inhalant
f.) Steroids
In: Nursing
Find the equation of the osculating circle at the local minimum of
3x^3 -7x^2 +(11/3)x+4
In: Math
P4-51B. (Learning Objectives 2, 4: Explain the objectives and components of internal control; evaluate internal controls) Each of the following situations reveals an internal control weakness: Situation a. In evaluating the internal control over cash payments of Arlington Manufacturing, an auditor learns that the purchasing agent is responsible for purchasing diamonds for use in the company’s manufacturing process, approving the invoices for payment, and signing the checks. No supervisor reviews the purchasing agent’s work. Situation b. Kelly Hixson owns an architectural firm. Hixson’s staff consists of 19 professional architects, and Hixson manages the office. Often, Hixson’s work requires her to travel to meet with clients. During the past six months, Hixson has observed that when she returns from a business trip, the architecture jobs in the office have not progressed satisfactorily. Hixson learns that when she is away, two of her senior architects take over office management and neglect their normal duties. One employee could manage the office. Situation c. Ron Lucas has been an employee of the city of Scandia for many years. Because the city is small, Lucas performs all accounting duties, in addition to opening the mail, preparing the bank deposit, and preparing the bank reconciliation. Requirements 1. Identify the missing internal control characteristic in each situation. 2. Identify each firm’s possible problem. 3. Propose a solution to the problem.
In: Accounting
Experiment [A] [B] Initial Rate (M/s)
1 0.20 0.50 0.32
2 0.60 0.50 2.88
3 0.20 0.25 0.040
Part A: Use the following data to determine the order with respect to reactant A in the reaction 3 A + 4 B → 2 C
Part B: Use the following data to determine the order with respect to reactant B in the reaction 3 A + 4 B → 2 C
In: Chemistry
If f(x)=2x^2−5x+3, find
f'(−4).
Use this to find the equation of the tangent line to the parabola
y=2x^2−5x+3 at the point (−4,55). The equation of this tangent line
can be written in the form y=mx+b
where m is: ????
and where b is: ????
In: Math
A box contains 8 red balls, 4 green balls, and 3 blue balls. You
pull 2 balls from the box (one at a time) WITHOUT
replacement.
**LEAVE ALL ANSWERS AS FRACTIONS**
Find the probability of the following:
a.) P(Red on 1st ball AND Red on 2nd ball) =
b.) P(Green on 1st ball AND Red on 2nd ball)
=
c.) P(Blue on 1st ball AND Green on 2nd ball)
=
d.) What is the probability of drawing 2 green
balls in your 2 pulls?
e.) What is the probability of selecting a red
ball on your second pull, given a red ball was already selected on
the first pull?
f.) What is the probability of drawing one red
ball and one green ball (in either order)?
g.) What is the probability or selecting two balls
of the same color?
h.) What is the probability or selecting two balls
of different colors?
In: Statistics and Probability