What are some actions a firm can take to shorten its cash conversion cycle?

Q: Please calculate cash conversion cycle?

A: Step 1 The cash conversion period (CCC) is a metric that measures how long it takes a business to…

Q: Why are accruals called spontaneous sources of funds, what are their costs, and why don't firms use…

A: Under the business setting, the spontaneous funds source states to the financing that arises from…

Q: True or False The cash conversion cycle is the sum of the inventory conversion period, the…

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

Q: If the sum of the incremental cash flows is negative, what is known about the rate of return on the…

A: Incremental Analysis: The method to measure the viability of different options related to business…

Q: What kind of change is represented in a firm by the incremental, cash flows?

A: Incremental cash flow refers to change in the cash flow of the company with respect to a investment…

Q: What is the cash conversion cycle? What is its equation?

A: The CCC tells firms that in how many days’ firms will realize its cash from its operations. It is a…

Q: Explain how each of the following factors would probably affect a firm’starget cash balance if all…

A: Treasury bills are short term obligations of the government with the maturity of less than one year.…

Q: Two firms- A and B- have same cash conversion cycle. But firm A have poor inventory conversion…

A: CCC stands for Cash Conversion Cycle is defined as the metric which states the time it requires the…

Q: What is Internal Rate of Return - All Cash Deal?  Please provide examples

A: Internal Rate of Return (IRR)IRR is the annualized effective compounded rate or return that can be…

Q: What is the maturity period required for an investment to qualify under the definitions of a cash…

A: Cash and cash equivalents correspond to just the line item on the balance sheet that lists the value…

Q: How would a reduction in the cash conversion cycle increase profitability?

A: Cash conversion cycle (CCC): It is a metric that speaks to the time it takes for a business…

Q: Which of the following situation is better for the company? O a. All of these O b. Cash conversion…

A: The cash conversion cycle (CCC) is the days of inventory plus the days of receivable less the days…

Q: Define the concept of cash conversion cycle and what is the difference between the operating cycle…

A: Calculating and analyzing a company's operational and cash cycles over time is an excellent…

Q: nds that it can draw on. o reduce collection time t wear to operate.

A: Lock box is a system where that can be utilized to reduce the time between customer sending a check…

Q: If an investment project will positively affect the cash flows of other products the firm currently…

A: Cannibalization can be defined as the negative effect on the existing business line or the product…

Q: 1. Can a firm with positive net income run cash? Explain.

A: Cash is very important in the business and there is need of cash in business and no business can…

Q: When using the NPV method for a particular investment decision, if the present value of all cash…

A: When NPV method is used the investment is measured on three scenarios Positive NPV Where the…

Q: What are the effects of Borrowing on Project Cash Flows?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Does an increase in the long-term growth rate of free cash flowsalways cause an increase in the…

A: Free cash flows are cash flows that are generated within the company from its operating activities…

Q: Why is the free cash flow valuation model so widely used?

A: With the free cash flow of the firm, administrators will focus on potential businesses that increase…

Q: How can we develop the techniques for establishing cash flow equivalence with compound-interest…

A: Answer: To measure the equivalence of the sequence of compound interest factors used to extract the…

Q: cash conversion cycle

A: Cash conversion cycle is a metric that the company uses to measure the time that it would take to…

Q: What role do incremental cash flows play in a replacement analysis?

A: Answer: Introduction: Replacement analysis is one of the key analyses in the concept of capital…

Q: How can we estimate Risky Cash Flow?

A: Companies always predict the cash flows related with the project because it helps to company to…

Q: What would happen to a company if it ran out of cash? Explain the importance of good working capital…

A: Working capital is excess amout of current assets over current liabilities.  Cash conversation cycle…

Q: What factors lead to a better cash flow position? How?

A: Cash flows refer to the amount of net cash and cash equivalents that flow in and out of the…

Q: What should a firm’s goal be regarding the cash conversion cycle,holding other things constant?…

A: The cash conversion cycle refers to the number of days between paying for crude materials or…

Q: What do we mean by the cash conversion cycle? Explain how it works

A: Cash Conversion Cycle is used to measure the time it takes an organization to convert it's resources…

Q: What is the cash conversion cycle of JFC? Note: don’t use excel and show your solution.

A: Here, Accounts Receivables is 7,621 Inventories is 5,972 Accounts Payable is 2,455 Cost of Goods…

Q: Sales projections and the ability to accurately predict

A: Sales projection is a crucial procedure that a firm would execute on regular basis. It helps a firm…

Q: a. What is the firm's market value capital structure? b. If Titan Mining is evaluating a new…

A: WACC: It is the average cost of capital of the firm considering all the individual costs of capital…

Q: What is incremental cash flow?

A: Cash flow is the movement of cash in the company. While making an investment in any project, cash…

Q: Calculate the present value and future value of an uneven cash flow stream.

A: A stream of cash flow is uneven  when all the amounts in the series of cash flows are unequal .i.e.,…

Q: Can management of a company such as Samsung use the cash conversion cycle as a useful measure of…

A:

Q: Explain how sunk costs and cannibalisation affect the determination of an investment’s incremental…

A: Introduction : . Simply put, sunk costs refers to the costs that has already been incurred and the…

Q: we can still calculate the IRR on incremental cash flows. True or false? Explain with example?

A: True, IRR can be still computed on incremental cash flow. IRRIt is the technique of discounted cash…

Q: What should a firm’s goal be regarding the cash conversion cycle?  Explain

A: The cash conversion cycle measures the number of days between the company making a deposit to buy…

Q: The principal of the time value of money is probably the single most important concept in financial…

A: Time value of money refers to decline in value of money with the passage of time due to inflation…

Q: Define the cash conversion cycle (CCC) and explain why, holding other things constant, afirm’s…

A: Cash conversion cycle (CCC) is the cycle which converts the investments made into raw material and…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.