Sol Manoloto Company has a sales of P110 million a year. If Sol Manoloto Company reduces its processing float by 3 days , what is the increase in the firm’s average cash balance? Assume 360 days per year.

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A: Days Sales Outstanding: The average number of days it takes a firm to receive payment for a…

Q: C. Exodus Corp. is analyzing the performance of its cash management. On the average, the firm holds…

A: Cash conversion cycle in the business mean the period in which raw material and other resources…

Q: Green Corporation anticipates a cash requirement of P1,000 over a 1- month period. It is expected…

A: Given, Cash requirement (1-month) = P1,000 Annual interest rate = 24% Transaction cost of borrowing…

Q: Zycad has sales of $110 million a year. If Zycad reduces their processing float by 3 days, what is…

A: The computation of increase in firm’s average cash balance is as follows:

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A: Return Point = {3*Transaction cost* (Standard deviation )2 / (4 *i/365)}  + Minimum Balance T =Fixed…

Q: Xader Manalastas predicts a cash requirement of P25,000 over a 1-month period in which cash is…

A: Baumol's model is used to find out the optimal cash balance. The optimal cash balance helps to…

Q: A firm has annual operating outlays of P1,800,000 and a cash conversion cycle of 60 days. If the…

A: Cash Conversion Cycle: The cash conversion cycle (CCC) is a statistic that represents the amount of…

Q: Calculate the cash conversion cycle. Round your answer to the nearest whole number.   days…

A: Information Provided: COGS = $144,000 (60% of sales) Inventory Turnover = 30x Accounts Receivable =…

Q: 4. Sovereign-Tea Company projected to make even monthly cash payments of P150,000 during the year.…

A: Total relevant cost = Holding cost +Transaction cost Formula for Holding cost= k(C/2) and formula…

Q: able securities, incurring a fee of P300 for each transaction. If Sandbox leaves its funds in…

A: In this we need to use Baumol model of cash management.

Q: Praxis Corp. is expected to generate a free cash flow (FCF) of $12,975.00 million this year (FCF₁ =…

A: A)

Q: Galaxy Corp. is expected to generate a free cash flow (FCF) of $6,430.00 million this year (FCF₁ =…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: Lux Co. would like to maintain its cash account at a minimum level of P25,000, but expect the…

A: Optimal upper cash limit means the limit where the cash balance is of the amount which is of ideal…

Q: P1 million each time it needs cash, what are the total costs per month associated its cash…

A: Holding cost is the cost that is assumed to be incurred as a result of any negative situation or…

Q: The karson transport company currently has net operating income of $508,000 and pays interest…

A: times interest earned = net operating income/interest expense

Q: Camp Manufacturing turns over its inventory eight times each year, has an average payment period of…

A: Given,       Average collection period = 35 days        Annual sales = $ 3.5 million        Day's in…

Q: If real gets a cash infusion of P1 million each time it needs cash, what are the total costs per…

A: As per Bartleby guidelines, in case of multi-part questions, we are only allowed to answer the first…

Q: ntonio is an analyst at Barrilla Group. The firm turns over its inventory 5 times each year. It has…

A: Cash conversion cycle tells that how much period is required to collect money from customer and…

Q: The owner of Ardent company wants to increase sales by ZMW75 000 over the next year. The company's…

A: Cash Cycle: It is the time taken between buying raw materials to make a product and collect money…

Q: The expected Cash Flow From Assets of The Skate Shop for the next two years are $208,000 and…

A: Terminal value is the value which is assumed to be received due to a stable growth rate Formula for…

Q: Parramore Corp has $17 million of sales, $3 million of inventories, $2.25 million of receivables,…

A: Step 1: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Pinocchio Inc. has a total annual cash requirement of P9,075,000 which are to be paid uniformly.…

A: Since you have posted a multipart question therefore we will solve the first three parts only.…

Q: Antivirus Inc. expects its sales next year to be $3,100,000. Inventory and accounts receivable will…

A: Given, Expected sales next year = $3,100,000 Increase in inventory and accounts = $540,000 Profit…

Q: Buccaneer, Inc., has determined that it needs $10 million in cash per week.     If Buccaneer needs…

A: Demand=10000000 Cost per infusion=100 holding cost=0.2/100 =0.002

Q: The management of XYZ Co has annual credit sales of $20 million and accounts receivable of $4…

A: Answer: Collection Period = Accounts Receivable/Credit Sales × 365 days Put the values in the…

Q: The white oak company's annual sales are 219 million van average of 9 days elapses between when a…

A: GIVEN   The white oak company's annual sales are 219 million van average of 9 days elapses between…

Q: Tinberg Cans expects sales next year to be $50,000,000. Inventory and accounts receivable (combined)…

A: In simplest terms, the amount of external funds needed  (EFN) will be equal to the expected increase…

Q: Sambonoza Enterprises projects its sales next year to be $4 million and expects to earn 5 percent of…

A: The financial requirement is the total funds or capital needed by the organization to financed the…

Q: Berry Manufacturing turns over its inventory 8 times each year, has an Average Payment Period of 35…

A: Cash conversion cycle is defined as the metric, which helps in expressing the time when they used to…

Q: Suppose that LilyMac Photography has annual sales of $233,000, cost of goods sold of $168,000,…

A: Introduction: The cash cycle is the amount of time it takes a business to convert raw resources into…

Q: The Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can…

A: To determine the transactions costs (per month) associated the cash infusions we first need to…

Q: A start-up in the retail market plans to invest $200,000 in advertising in its first start-up and…

A: Present value annuity With annuity (PMT), interest rate (r) and period (n), the present value (PV)…

Q: A firm has daily cash receipts of P100,000. A bank has offered to reduce the collection time on the…

A: Daily cash receipts = P 100000 Reduction in collection time (n) = 3 days Monthly fee = P 500 r = 5%

Q: A start-up company expects to spend $100,000 the first year for advertising, with amounts decreasing…

A: Equivalent annual worth is the annual worth of all the cash flows received/ paid during a project.…

Q: The Boyd Corporation has annual credit sales of $1.6 million. Currentexpenses for the collection…

A: In order to find whether the firm should relax collection efforts, we should calculate the net…

Q: Leyton Lumber Company has sales of $10 million per year, all on credit terms calling for payment…

A: Days sales outstanding refers to the number of days taken by the company in collecting the cash from…

Q: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35…

A: given, inventory conversion period=50 daysaverage collection period = 35 dayspayable deferral period…

Q: 3. Margetis Inc. carries an average inventory of $750,000. Is annual sales are S10 million, its cost…

A: Cash conversion cycle (CCC) is the  number of days a firm takes to purchase inventory and convert…

Q: MLX has annual sales of $320 million per year and has calculated the collect float to be 12 days. If…

A: Collection float means that the amount deposited by customer but that is not available for use. So…

Q: The Netflix Corporation's cash flow from operations before interest and taxes was $5.25 milion in…

A: Calculation of Price per share:The price per share is $9.39.Excel Spreadsheet:

Q: Tomas Fishing Products is analyzing the performance of its cash management. On the average, the firm…

A: The question is based on the concept of the operating cycle, which is defined as time required for a…

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A:

Q: Leyton Lumber Company has sales of $12 million per year, all oncredit terms calling for payment…

A: Capital refers to the desired amount of cash and other financial assets  such as stocks, bonds,…

Q: XYZ have estimated free cash flows of P2,200,000 on year 5 and assumes that the company’s cash flow…

A: Solution Given Cash flow on year 5 2,200,000 Growth rate 3% Discount rate 11%