Answer:
8.78
Explanation:
The computation of the cash cycle is given below;
We know that
Cash cycle = Inventory conversion period + Receivables conversion period - Payables conversion period.
Here
1. Inventory conversion period = Avg. Inventory ÷ (COGS ÷365)
= (11,000) ÷ (395000 ÷ 365)
= 10.16
2. Receivables conversion period = Avg. Accounts Receivable ÷ (Credit Sales × 365)
= (27000/520000) × 365
= 18.95
3. Payables conversion period = Avg. Accounts Payable ÷ (Purchases × 365)
= (22000 ÷ 395000) × 365
= 20.33
Now the cash cycle is
= 10.16 + 18.95 - 20.33
= 8.78
Answer:
1693.25
Explanation:
The computation of the current price of the item and the price 9 years from today is shown below:-
p(t) = 1,200 × (1.039)^t
Now, the current price can be found by putting t = 0
p(0) is

The price 10 years from today
p(9) is

Now we will solve the above equation
= 1,200 × 1.411041958
= 1693.25035
or
= 1693.25
Answer:
It will take 1.97 years to payback the machine.
Explanation:
Giving the following information:
It will cost $7,500 to acquire a cotton candy cart. Cart sales are expected to be $3,800 a year for four years.
We need to determine the amount of time required to payback the machine.
Year 1= 3,800 - 7,500= -3,700
Year 2= 3,800 - 3,700= 100
3,700/3,800= 0.97
It will take 1.97 years to payback the machine.
Answer:
Cost of common equity is 15.7% and WACC is 7.2%
Explanation:
D1 is
D1= 2.25 (1+0.05)
The cost of common equity is
Rs = 2.36/ 22.00 + 5% =0.157= 15.7%
The cost of common equity is weighted average cost of capital (WACC)
WACC = (0.35) * (0.08) (1- 0.40) + 0 preferred stock+ (0.35) * (0.157)
WACC = 0.03 *0.6 + 0 + 0.054
WACC = 0.018 + 0.054
WACC = 7.2%
Answer:
$2,500
Explanation:
The calculation of American opportunity tax credit is shown below:-
According to the given situation, Steve's part-time job wouldn't come in between his not applying for the credit as the AGI is lower than the applying number.
Therefore, the credit would be 100% of first is
= $2,000 + 25% (Increased)
= $2,500