You have recently been hired to improve the performance of Maitland Corporation, which has no idea how the company is performing with cash. In one part of your analysis, you want to determine the firm’s Net working capital. Using the following information as a 360-day year
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You have recently been hired to improve the performance of Maitland Corporation, which has no idea how the company is performing with cash. In one part of your analysis, you want to determine the firm’s Net working capital. Using the following information as a 360-day year.
- Current Inventory = $105,000.
- Annual Sales = $450,000.
- The cost of goods sold is 70% of sales
- Accounts receivable = $95,000.
- Accounts payable = $15,000.
- Total annual purchases =$220,000.
- Purchases credit terms: net 30 days.
- Receivables credit terms: net 50 days.
What is Maitland Corporation Net Working Capital?
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- Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Your consulting firm was recently hired to improve the performance of ABC Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to analyze the firm's cash cycle. Using the following information and a 365-day year, what is the firm’s operating cycle? Average inventory = $75,000 Annual sales = $875,000 Annual cost of goods sold = $525,000 Average accounts receivable = $160,000 Average accounts payable = $25,000You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm’s cash conversion cycle. Using the following information and a 365-day year,(b) what is your Net Working Capital • Current inventory = $ 180,000.00 • Annual sales = $ 700,000.00 • Accounts receivable = $ 165,000.00 • Accounts payable = $ 85,000.00 • Total annual purchases = $ 567,000.00 • Purchases credit terms: net 30 days. • Receivables credit terms: net 50 days.
- You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following Information and a 365-day year, your estimate of the firm's current cash conversion cycle would be __________days Current Inventory = P120,000. Accounts receivable = P157,808. Accounts payable = P25,000. Annual sales P600,000. Total annual purchases = P365,000. Purchases credit terms: net 30 days. Receivables credit terms: net 50 days. O 100 O 49 O 144 O 168You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm’s cash conversion cycle. Using the following information and a 365-day year,(a) what is your estimate of the firm’s current cash conversion cycle? Current inventory = $241,000.00 • Annual sales = $1,200,000.00 • Accounts receivable = $300,000.00 • Accounts payable = $245,000.00 • Total annual purchases = $600,000.00 • Purchases credit terms: net 30 days. • Receivables credit terms: net 50 days.You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm’s cash conversion cycle. Using the following information and a 365-day year,(a) what is your estimate of the firm’s current cash conversion cycle? • Current inventory = $ 180,000.00 • Annual sales = $ 700,000.00 • Accounts receivable = $ 165,000.00 • Accounts payable = $ 85,000.00 • Total annual purchases = $ 567,000.00 • Purchases credit terms: net 30 days. • Receivables credit terms: net 50 days.
- As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $24.5 million, cost of goods sold of $23.5 million, 50 operating weeks a year, total average on hand inventory of $2,400,000, accounts receivable equal to $2,455,000, and accounts payable of $3,775,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- v inventory weeks of supply and -Select- v accounts receivable weeks of supply or v accounts payable weeks of supply are ways to improve overall firm performance. -Select-As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $24.6 million, cost of goods sold of $22.7 million, 50 operating weeks a year, total average on hand inventory of $2,050,000, accounts receivable equal to $2,470,000, and accounts payable of $3,735,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- inventory weeks of supply and -Select- accounts receivable weeks of supply or -Select- ✓accounts payable weeks of supply are ways to improve overall firm performance.Your consulting firm was recently hired to improve the performance of Realyou Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm’s cash conversion cycle. Using the following information and a 365-day year, what is the firm’s present cash conversion cycle? Average inventory P75,000 Annual sales 500,000 Annual cost of goods sold 360,000 Average accounts receivable 160,000 Average accounts payable 25,000
- As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $23.6 million, cost of goods sold of $19.5 million, 50 operating weeks a year, total average on-hand inventory of $2,300,000, accounts receivable equal to $2,440,000, and accounts payable of $3,710,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- ✓inventory weeks of supply and -Select- ✓accounts receivable weeks of supply or -Select- are ways to improve overall firm performance. accounts payable weeks of supplyYour consulting firm was recently hired to improve the performance of RP Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis. you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is the firm's present cash conversion cycle? Average inventory Annual sales Annual cost of goods seld Average accounts receivable Average accunts payable P5.000 P00.000 PH0,000 P0,000 F5000 140.6 days 120.6 days 133.6 days 148.0 days O 126.9 daysSuppose that Gyp Sum Industries currently has the balance sheet shown. below, and that sales for the year just ended were $9.5 million. The firm also has a profit margin of 25 percent and a retention ratio of 30 percent, and expects sales of $7.5 million next year.
