Company has experienced a stochastic demand for its product, which results in fluctuating cash balances randomly. Determine the optimal cash balance, and average cash balance.  check the attached photo for addi

An intern at Block Financials, specializing in block chain transactions is preparing the operating activities section of the statement of cash flows. How is a decrease in current liabilities handled? Multiple Choice It is subtracted from net income in the cash flows fror operating activities section. It is added to inventory purchases in the cash flows from investing activities section. It is added to net income in the cash flows from operating activities section. It is subtracted from current assets in the cash flows from financing activities section.

Rate-based statistics (such as payback and discounted payback) represent summary cash flows, and these summaries tend to lose which two important details? O The investment size and the cash outflows that occur before the testing period O The investment size and the cash inflows that occur during the testing period O The investment size and the cash inflows that occur before the testing period O The investment size and cash inflows that occur after the rather arbitrary testing period

Webster provides the following information regarding its actual and future sales: February March April January Actual May Actual Forecast Forecast Forecast Cash Sales $ 50,000 $ 80,000 $ 90,000 $ 100,000 $ 120,000 Credit Sales 80,000 $ 12,000 $ 90,000 $ 40,000 $ 60,000 Management expects that 40% of credit sales are collected in the month of the sale. 40% are collected in the month after the month of sale. 20% are collected in the month following. na memo to your team (who are preparing the budgets), management also provides the following information: - The company has an obligation to repay $120,000 in debt in April. There is no debt to be repayed in the other months - Cost of sales is 50% of sales revenue. - The company has regular deliveries of inventory to ensure that it can continue to meet its customer obligations. Inventory deliveries are paid in the following month and expected to be equal to 60% of sales in the delivery month. - Salaries and wage expenses add up to $10,000 per…

Suppose Leonard, Nixon, & Shull Corporation’s projected free cash flow (FCF) for next year is $750,000, and FCF is expected to grow at a constant rate of 4% indefinitely.  If the company’s weighted average cost of capital is 10%, what is the value of its operations?   a. $18,750,000   b. $12,500,000   c. $7,500,000   d. $13,000,000   e. $10,833,333

Explain how the EOQ inventory model can be modified and used to help determine the optimal sizeof a firm’s cash balances. Do you think the EOQapproach to cash management is more or less relevant today than it was in precomputer, preelectronic communications days?

Which of the following is true of EFT? It is easy to document purchase and sale transactions. It means Effective Funds Transfer. It cost more than receiving cash payments through the mail. It can process certain cash transactions at less cost than by using the mail.

PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 1. La Sorpresa de Ayer, S.A., a leading local company, knows that in order to know the rotations necessary to quantify its cash cycle, it is essential to apply some financial ratios. So how often it pays its suppliers, how often it rotates its inventories, and how often it charges its customers, will have to be calculated with the following data:Total sales of the company..........................$4'586,109.47Proportion of credit sales.......................      65%Average customer balance............................. $ 372,621.40Cost of sales ratio......................       65%Average inventory balance...................... $ 420,393.37Average supplier balance................... $ 288,004.21Beginning inventory................................................ $ 358,554.55 The company spends about $12.350 million in operating cycle investments. With this data it is necessary to calculate: 1) The operating cycle.2) The cash…

The reliability of short-term cash forecast depends most heavily on the quality of:  a) sales forecast b) cost of goods sold forecast c) current ratio forecast d) shares outstanding forecast

Please help me.  Thankyou.