During the wake of the financial crisis, Ben Bernanke, chairman of the Federal Reserve, said that “shortening the cash cycle and better use of working capital” are the most important factors as private-sector businesses struggle to overcome the current economic volatility and difficulty in accessing capital markets (IBM Global Business Services, “Managing Working Capital in the New Economic Environment, http://www-935.ibm.com/services/uk/bcs/pdf/working_capital_paper.pdf). Given the importance of working capital management, consider the case of Purple Dandelion Flower Inc. and both the amount of working capital that it is using being used in the firm and explore the prospects of how its working capital will be financed. Purple Dandelion Flower Inc. reported the following results for current assets and liabilities on its most recent balance sheets. Interestingly, the company’s sales did not change—it reported sales of $27,750 for its most recent year as well as for last year. The columns labeled “Ending ($)” show results at the end of the most recent year, and the columns labeled “Beginning ($)” show results at the end of the previous year:   Beginning Ending Current assets     Cash $6,500 $12,500 Accounts receivable 12,500 10,000 Inventory 9,750 8,500 Current liabilities     Accounts payable $12,000 $12,250 Notes payable 8,000 9,000 Accruals 0 0   Using the information given and a 365-day year, calculate days of working capital, net working capital, and net operating working capital for Purple Dandelion Flower. Use your calculations to complete the following statements, and round your numerical responses to two decimal places. • Purple Dandelion’s days of working capital improved from  (___) days in the previous year to (___)days at the end of the most recent year. • The company’s net working capital increased from $8,750.00 in the previous year to (___) at the end of last year. • Purple Dandelion’s net operating working capital increased from  (___) in the previous year to $18,750.00 at the end of last year.

What is a financial market? What is the role of a financial market? 3-2 What would happen to the standard of living in the United States if people lost faith in our financial markets? Why? 3-3 How does a cost-efficient capital market help to reduce the prices of goods and services? 3-4 The SEC attempts to protect investors who are purchasing newly issued securities by requiring issuers to provide relevant financial information to prospective investors. The SEC does not provide an opinion about the real value of the securities. Hence, an unwise investor might pay too much for some stocks and consequently lose heavily. Do you think the SEC should, as a part of every new stock or bond offering, render an opinion to investors on the proper value of the securities being offered? Explain.

The market for capital Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract capital away from inefficient firms with less profitable opportunities. Investors supply firms with capital at a cost called the interest rate. The interest rate that investors require is determined by several factors, including the availability of production opportunities, the time preference for current consumption, risk, and inflation. Suppose the Federal Reserve (the Fed) decides to tighten credit by contracting the money supply. Use the following graph by moving the black X to show what happens to the equilibrium level of borrowing and the new equilibrium interest rate. Q1. Which tend to be more volatile, short- or long-term interest rates? Long-term interest rates      2. Short-term interest rates Q2. If the inflation rate was 3.20% and the nominal interest rate was 4.20% over the last year, what was the real rate of interest over…

a) One of the biggest problems for any economy is to figure out how to get or transfer money from people or firms who want to save (savers) to people or firms who want to borrow (investors). • Explain how financial markets can help to solve this problem efficiently. • Discuss how financial markets function and which tools they can offer to solve this problem. • Discuss how financial systems are of crucial significance to adequate capital formation, which is indispensable to a speedy economic growth and development. b) Analyze the relationship of financial development and economic growth/development. In other words, discuss how financial, especially capital, markets help economic growth and development.

Is Apple in good financial standing in 2022 ? The corporate finance manager strategies and actions are adding value to the investor.

Capital Structure involves, among other things, the amount of debt and equity a company holds. Once again, given the current economic environment, what is an appropriate amount of debt (leverage) that some companies have or should have these days with all the uncertainty surrounding the markets and economy? what is an example of a company experiencing such leverage issues;

Several factors affect a firm’s need for external funds. Evaluate the effect of each following factor and place a check next to each factor that is likely to increase a firm’s need for external capital—that is, its AFN (additional funds needed). Check all that apply. The firm increases its dividend payout ratio. The firm switches its supplier for the majority of its raw materials. The new supplier offers less favorable credit terms and thus reduces the trade credit available to the firm, resulting in a reduction in accounts payable. The firm improves its production system and increases its profit margin. Accounts payable and accrued liabilities represent obligations that the firm must pay off. Assuming everything else holds constant, if they increase, the firm’s AFN will_________    .

Which question reflects a decision regarding working capital management?   Select one: a. Should the company issue new shares or borrow money? b. Should the company replace its older equipment with a new equipment in order to increase sales? c. What is the maximum amount of accounts receivable that the company should have at a particular time? d. How much should the company borrow to buy a new machine?

Armbrust Corporation is the maker of fine fitness equipment. Armbrust's bank has been pressuring the firm to improve its liquidity. Which of the following actions proposed by the CFO do you believe will actually achieve this objective? a. Sell new equity and use the proceeds to purchase a new plant site. -Select- b. Use cash and marketable securities to pay off short-term bank borrowings and accounts payable. -Select- v c. Borrow long-term and use the proceeds to pay off short-term debt. -Select- v d. Sell surplus fixed assets and invest the proceeds in marketable securities. -Select- V

I need answers thank you.