Which of the following situation is better for the company? O a. All of these O b. Cash conversion cycle should be shorter Oc. Cash conversion cycle should longer O d. Fixed 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: When using the NPV method for a particular investsment decision, if the present value of all cash…

A: NPV stands for Net present value. It is a method used to evaluate the feasibility of the project.…

Q: When considering the discount rate to use for discounting cash flows of an entire company, we can…

A: The discount rate is the loan cost used to decide the current worth of future incomes in a…

Q: Using the given: a. Compute the cash conversion cycle of the entity. b. Interpret the given and…

A: Cash conversion cycle is the amount of time that will take to convert raw material into cash means…

Q: Identify which from the following scenarios depict relevant cash flows in making the decision…

A: While making decision for accepting two alternatives, we always consider relevant cost and relevant…

Q: An analyst who is interested in assessing a company’s fi nancial position is most likely to focus on…

A: Financial statement includes statement of cash flows, Balance sheet and Profit and loss statement.

Q: Define the following terms: inventory conversion period, average collection period, and payables…

A: All the transactions of the company that are happened during the year will be recorded first in the…

Q: When faced with cash flows of equal magnitude occurring at different points in time, we prefer to:…

A: The time value of money concept is based on the idea that, money received today is more worthy…

Q: w does stretching out AP enhance cashflow?  be specific in terms of operating cashflo

A: Cash flow are very important for any firm because without cash no business can survive for much…

Q: Discuss the effect on Free Cash Flow in each of the following situations. Assume that all other…

A: Discuss the effect on Free Cash Flow in each of the following situations. Assume that all other…

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: Which of the following is the correct definition for present value (PV)?

A: Present value is an important concept in finance which is based on the concept of time value of…

Q: Which of the following is a stronger indicator of cash flow flexibility?A. cash flow from operating…

A: Cash is very important current asset for the business. Cash flows can be cash inflows and cash…

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: A negative cash conversion cycle (CCC) means the average payment period (APP) exceeds the operatins…

A: cash conversion cycle: how much time it takes for a company to convert its investment into cash from…

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: In a cash flow series regarding the gradient: Select one: O a. Uniform gradient signifies that an…

A: When cash flows of a series changes with a constant amount, it is knows as gradient series.

Q: Suppose an investment has conventional cash flows with positive NPV. How would it impact your…

A: Net Present Value is Positive of the project. Impact of these measurements on the decision of…

Q: What is cash conversion cycle and how is it different from operating cycle?

A: Cash conversion cycle: It is a way that helps a company to determine how much it requires to convert…

Q: An increase in the discount rate will______ O a. Reduce the present value of future cash…

A: This question can be solved with the help of 2 examples. Example 1 Initial investment=15000 Discount…

Q: The net present value (NPV) method weighs early receipts of cash much more heavily than moredistant…

A: Net Present Value method:- Net present value is the one of the technique of capital budgeting. This…

Q: The NPV method determines how much the present value of cash inflows exceeds the present value of…

A: The amount of difference between the PV (present value) of cash inflows and cash outflows is called…

Q: A project can have as many different internal rates of return as it has: O changes in the sign of…

A: The internal rate of return (IRR) is used to measure the profitability of investments. It is the…

Q: Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is…

A: Cash flow is the amount of cash equivalent that the company gets or receives or gives out through…

Q: c. Use arrows to demonstrate, on the time line in part b, how discounting to find present value can…

A: NPV or Net present value method is a capital budgeting method to compare any two or more similar…

Q: Please answer the following questions 1. _________________ is the discounted net future cash…

A: Profitability Index= PV of cash inflows/Initial cash outlay where, PV= Present Value Balanced…

Q: Free cash flow method gives importance to both anchor and extra value. Do you agree?

A: The question is based on the concept of Financial analysis.

Q: Which of the following decisions do NOT influence the cash from operating activities slide?  Which…

A: Operating Activities are company core business activities such as manufacturing , distributing ,…

Q: The measure of how quickly an item can be converted into cash is referred to as; Leverage Solvency…

A: Solution: The measure of how quickly an item can be converted into cash is referred to as;…

Q: Is it possible for a firm’s cash cycle to be longer than its operating cycle? Explain why or why…

A: Operating cycle is the average time between acquisition of inventory and conversion into cash. Cash…

Q: Incremental cash flow is calculated as (cash flowB− cash flowA), where B represents the alternative…

A: Incremental cash flows are the cash flows that are left after meeting initial cash requirements as…

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 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: What are three concerns the financial manager should be aware of when analyzing a balance sheet, &…

A: There are financial statements prepared by the company for the purpose of considering information…

Q: Consider the calculation of an external rate of return (ERR). The positive cash flows in the cash…

A: External rate of return is the return rate which is expected to be generated from the project. If…

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

A: The cash conversion cycle is the time period between the out flow of cash for purchasing raw…

Q: The rate of return that equates the present value of cash inflows and outflows is the: A. hurdle…

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: Explain how the EOQ inventory model can be modified and used to help determine the optimal sizeof a…

A: Economic order quantity (EOQ) aims to assess the correct amount of inventories to be ordered in…

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: If cashflows are discounted at____ the net present value is zero   a. Internal rate of return…

A: Capital Budgeting entails long-term planning and monitoring of capital expenditures, as well as a…

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: Operating Cash Flow (OCF) is equal to what?

A: Operating cash flow (OCF) is the cash flow derived from the operating activities. It excludes the…

Q: ch is easier to calculate

A: FCFE is the amount of cash a business generates that is available to be potentially distributed to…

Q: Explain what is meant by cash management and the cash conversion cycle and calculate the effective…

A: cash is considered to be the one of the important aspect of the management. management of cash plays…

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.