International Edition---principles Of Corporate Finance, 12th Edition
12th Edition
ISBN: 9781259692178
Author: Richard Brealey And Stewart Myers
Publisher: MCG
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Chapter 29, Problem 1PS
Summary Introduction
To determine: The cash cycle of company E.
Cash cycle is the overall circulation or cycle of cash commences from the payment of raw materials and ends with receipt of cash on goods sold.
Expert Solution & Answer
Explanation of Solution
Computation of cash cycle is as follows:
Therefore, the cash cycle of the company E is 137 days.
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Students have asked these similar questions
Make a Summary of USES and SOURCES of Cash, then make a CASH FLOW STATEMENT, given the Income Statements and Balance Sheets for 2012 and 2013.
Considering 2012 as the base year, you are required to compute the trend index for the following items:
Revenue, cost of goods sold, total expenses and net earnings. Comment on the trends of each of the items.
Total assets, total liabilities and shareholders’ equity. Comment on the trends of each of the items.
Cash flow from operation, cash flow from investing, cash flow from financing and closing cash balances. Comment on the trends of each of the items.
Calculate the net cash flow from financing activities for 2008.
The following selected account balances were taken from Buckeye Company's general ledger at January 1, 2008, and December 31, 2008:
January 1, 2008 December 31, 2008
Inventory 59,000 41,000
Accounts payable 52,000 71,000
Mortgage payable 120,000 95,000
Salaries payable 9,000 3,000
Investments 75,000 68,000
Accounts receivable 63,000 96,000
Land 58,000 88,000
Common stock 100,000 180,000
Retained earnings 22,000 34,000
The following information was taken from Buckeye Company's 2008 income statement:
Sales Revenue $420,000
Cost of goods sold 300,000
Salaries expense 88,000
Loss on sale of investments 6,000
Net income $26,000
Chapter 29 Solutions
International Edition---principles Of Corporate Finance, 12th Edition
Ch. 29 - Prob. 1PSCh. 29 - Prob. 2PSCh. 29 - Sources and uses of cash and working capital...Ch. 29 - Sources and uses of cash State whether each of the...Ch. 29 - Prob. 5PSCh. 29 - Forecasts of payables Dynamic Futon forecasts the...Ch. 29 - Prob. 8PSCh. 29 - Prob. 9PSCh. 29 - Prob. 10PSCh. 29 - Prob. 11PS
Ch. 29 - Cash cycle A firm is considering several policy...Ch. 29 - Prob. 13PSCh. 29 - Collections on receivables If a firm pays its...Ch. 29 - Short-term financial plans Which items in Table...Ch. 29 - Prob. 16PSCh. 29 - Short-term financial plans Work out a short-term...Ch. 29 - Prob. 18PSCh. 29 - Prob. 19PSCh. 29 - Long-term financial plans Corporate financial...Ch. 29 - Prob. 21PSCh. 29 - Long-term financial plans a. Use the Dynamic...Ch. 29 - Long-term plans The financial statements of Eagle...Ch. 29 - Forecast growth rate a. What is the internal...Ch. 29 - Forecast growth rate Bio-Plasma Corp. is growing...Ch. 29 - Long-term plans Table 29.19 shows the 2016...
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