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sdas [7]
2 years ago
7

Suppose that Freddie's Fries has annual sales of $520,000; cost of goods sold of $395,000; average inventories of $11,000; avera

ge accounts receivable of $27,000, and an average accounts payable balance of $22,000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.)
Business
1 answer:
Nadusha1986 [10]2 years ago
8 0

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

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You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at the time of purchase. The coup
Gekata [30.6K]

Answer: 11.95%

Explanation:

Present value of the bond before you sold it;

FV = 1,000

N = 6

PMT = 100 = 10% * 1,000

Rate = 8%

Using excel to calculate, use the PV function;

Present value of bond = $1,092.46

Present value of bond after you sell it;

FV = 1,000

N = 5

PMT = 100 = 10% * 1,000

Rate = 7%

Present value = $1,123.01

The Annual total rate of return will be = ( New Price - Old price + Income) / Old price

= ( 1,123.01 - 1,092.46 + 100) / 1,092.46

= 11.95%

4 0
3 years ago
A brand of wine is priced at only $5 per bottle, far below the market price of most high quality wines. Before any reputation ex
lakkis [162]

Answer:

Re-branding

Explanation:

This is an example of re-branding the product. Re-branding is a strategy for marketing that associates a new name, image and designs to the existing product so as to change consumer perception of that product. This helps bring forward a new brand identity for an existing product allowing it to be able to be competitive and differentiated. It is basically now marketed as a new and or improved product.

Hope that helps.

8 0
3 years ago
You purchased a share of SPCC for $100 and expect to receive a dividend of $5 in one year. If you expect the price after the div
Elenna [48]

Answer:

The answer is 15%

Explanation:

(P1 - Po) / Po + D

Where P1 is the price of the share at the end of the year

Po is the price of the share at the beginning of the year

D is the Dividend receceived

P1 is $110

Po is $100

And Dividend is 5%

($110 - $100) / $100 + 5 %

$10/100 + 5%

10% + 5%

= 15%

The total return will you have earned over the year for the purchase of a share of SPCC is 15%

3 0
3 years ago
Carrie's Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie's woul
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Answer:

The answer is: E) None of these.

Explanation:

A foreign national is a person who wasn´t born in the country in which he or she temporarily lives in.

We don´t have enough information to know if Carrie´s Car Care is a wealthy company. Maybe its total sales are just $10,000 a year but they export $2,500.

A multinational corporation usually has branches or subsidiaries. All we know about Carrie´s Car Care is that it makes some money outside the US, but we don´t know how. Maybe they simply export 25% of their products or maybe they are a huge multinational corporation. Not enough information.

The term globalization corporation doesn´t exist. The term corporate globalization refers to very large multinationals that reach all or most of the world´s markets.

6 0
3 years ago
A spurious relationship occurs between two variables when:
Solnce55 [7]
Bovin and bogus are the 2 variablez used in a spurious relationship
6 0
3 years ago
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