cribe the factors in selectir ntify the sources of short-t ermine the costs of short-t . SHORT TERM FINANCIN
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Topic: short term financing
Directions: solve the following (please answer subpart 1-3)
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- A firm has applied for working capital finance from a commercial bank. Estimate the working capital requirements. You can add 10% to estimated figures for exigencies. Sales 2,247,000 CoGS 1,637,100 GP 609,900 Admin expenses 149,800 Selling exp 139,100 Profit before tax 321,000 Tax provision 107,000 PAT 214,000 Material used 898,800 Wages and other manf. Exp 668,750 Depreciation 251,450 Less: stock and finished goods (10% product not yet sold) 181,900 The above figures are related to finished goods and not for WIP, 15% of year’s production are in progress on an average requiring full material but only 40% of other expenses. The firm has policy of keeping two months consumption of material in stock. All expenses are paid one month in arrear. Suppliers give one and half month credit, 20% sales are in cash, credit period allowed is two months. 70% of income tax has to be paid in advance.1. AXN Sdn Bhd needs to raise RM1, 000,000 in short-term loan for five months. loan from OCBC bank at discounted interest rate of 12% per annum and a 20% compensating balance. The present account balance in the company is RM 100,000. Compute the effective cost of financing.QUESTION 1 Read the following passage and answer the questions that follow:DIDO (Pvt) Ltd is a data management company operating in Palapye in Botswana. You are the financial manager for this company and the management has requested you to present a paper on short term financial management issues. DIDO (Pvt) Ltd has a permanent funding requirement of P135 000 in operating assets and seasonal funding requirements that vary between P0 and P990 000 and average P101 250. If the company can borrow short term funds at 6.25% and long term funds at 8%, and it can earn 5% on the investment of any surplus balances.The company has annual sales of P10 million, a cost of goods sold of 75% of sales, and purchases that are 65% of cost of goods sold. The company has an Average Age Inventory of 60 days, an Average Collection Period of 40 days and an Average Payment Period of 35 days.Required: a. Calculate the company’s cash conversion cycle. b. Calculate the annual cost of an aggressive strategy for…
- Hi,how to use the excel function (IRR and Effect) to determine which money lender offers a better rate: 1. Ah Long Finance: Loan amount: $20,000; instalment $600 per month x 36 months 2. Sharky Finance: Loan amount: $30,000; instalment $555 per month x 60 months 3. Ah Beng Finance: Loan amount: 40,000; instalment $ 760 per month x 59 months 4. Barracuda Finance: Loan amount: $50,000; instalment $925 per month x 60 monthsThanks.2. Mala-Inse Company needs ₱5,000,000 short-term credit for 90 days. To produce the amount, the company intends to sell commercial paper with a discount rate of 15%, issuance cost of ₱75,000 and other flotation cost of ₱15,000. Determine the simple cost of financing? (round to 4 decimal places)The following are relevant information pertaining to the results of the business operations for Maisarah Islamic Window for the year 2020: Income from Operations2600000Expenses from Operations1180000Indirect Income (Fee Based)300000Indirect Expenses260000The above profit from operation is prior to the distribution of profit to mudharabah depositors. The agreed profit sharing ratio between the Bank and mudharabah depositors is 60:40 respectively.Required:Assuming that the Separate Investment Account Method SIAM is used, calculate the net profit/loss to the Islamic Bank (Before Tax and Zakat)
- Capita had the following bank loans outstanding during the whole of 20X8: $m 9% loan repayable 20X9 15 11% loan repayable 20Y2 24 Capita began construction of a qualifying asset on 1 April 20X8 and withdrew funds of $6 million on that date to fund construction. On 1 August 20X8 an additional $2 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8. A $560,000 B $472,500 C $750,000 D $350,00financial math A vehicle is financed as follows: Down payment $8,000.00 and three quarterly installments of $5,000.00. A buyer proposes: One down payment plus an installment of $8,000.00 in nine months. The agreed rate was 1% per quarter. What is the value of the entry proposed by the buyer, calculated on today's date and commercial criteria?Company Z purchases a building for $500,000, financed with a mortgage loan of $400,000. Calculate the company's debt-to-assets ratio and comment on the implications for the company's financial leverage.
- 5.-DO IT IN EXCEL, AND SHOW THE FORMULASThe company purchases a machine, its cost of $726,000 will be financed with a loan at 13.8% interest for three years that requires equal semi-annual payments (annuities) that include principal and interest. What is the amount of the payment? A) $185,674.92 B) None of these amounts C) $311,662.13 D) $151,841.86PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 9.-Textiles del Desierto, S.A., negotiates an industrial equipment worth $650,000.00 (20.35) cash is sold in installments, with an advance payment of 15% and the balance in a year and a half with equal semi-annual payments, charging 16½ % interest. Find the value of each of the semiannual payments or annuities. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel. please... understand the context of the exercise in Spanish, it is easy to understand.You have been appointed as a financial consultant by the directors of Cochin Holdings. They require you to calculate the cost of capital of the company. The following information is available on the financing of the company: · R10 000 000, financial lease due in 5 years and the current yield-to-maturity is 10%. Prepare a loan amortization scheduleq