Answer:
PV= $8235.817383
Explanation:
Giving the following information:
Your brother has asked you for a loan and has promised to pay you $9,800 at the end of three years. You normally invest to earn 6.40 percent per year.
FV= $9,800
i= 0.064
n= 3
Present Value=?
We need to use the present value formula:
PV= FV/(1+i)^n
PV= 9800/(1.064^3)= $8235.817383
Answer:
1. Meena should take the quantity discount since with such discount the EOQ will rise by just 1 unit from 20.5units to 21.5 units and a net gain of $49.18.
2. The EOQ without discount will be 20.5 units
Explanation:
EOQ=Square root of ((2xordering cost x demand)/ (Carrying cost))
Gains of accepting discount will be
i. ordering cost savings= (demand/quantity order) x ordering cost
= (660/360)*23=$42.16
ii. Price saving per item=0.18 x 660 =$118.80
total gain =$160.96
iii. Stockholding cost =300 x (23 x 0.91 ) x 0.18=$1,130.22
iv. Additional cost incurred by increasing order= 1,130.22-(300 x 23 x0.18)
=$111.78
Net gain= 160.96-111.78
= $49.18
Answer:
$131,500
Explanation:
The reason is that the saving account balance of $120,000 is easily convertible to cash within a seconds which means it must be included in the balance sheet.
Similarly the Cash in hand of $1,200 can be used at the instant so it must also be included in the cash balance in the balance sheet.
Checking account balance is also easily convertible to cash and must be included in the cash figure in the balance sheet by $10,000.
The certificate of deposit and the cash refund due from state taxing authority must not be included in the cash balance at the year end balance sheet because these are not readily convertible to cash in future.
So
Cash balance = $120,000 + $1,200 + $10,000 = $131,500
Answer:
Cold Chiller Corporation (CCC)
Investment in cash conversion cycle:
= $10 million x 60% = $6million
which is invested for 145 (80 + 35 + 30) days before being realized as cash.
Explanation:
The cash conversion cycle (CCC) is a metric that expresses the time (measured in days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales. It gives us an indication as to how long it takes a company to collect cash from sales of inventory. Often a company will finance its inventory instead of paying for it with cash up front.
The formula for the Cash Conversion Cycle is:
CCC = Days of Sales Outstanding PLUS Days of Inventory Outstanding MINUS Days of Payables Outstanding.
CCC = DSO + DIO – DPO.
Days of Sales outstanding:
DSO = [(Beginning Accounts Receivable + Ending Account Receivable) / 2] / (Revenue / 365)
Days of Inventory Outstanding:
DIO = [(Beginning Inventory + Ending Inventory / 2)] / (COGS / 365)
Operating Cycle = DSO + DIO.
Days of Payables Outstanding:
DPO = [(Beginning Accounts Payable +Ending Accounts Payable) / 2] / (COGS / 365)
