PRIN.OF CORPORATE FINANCE (LL) >CUSTOM<
12th Edition
ISBN: 9781260439137
Author: BREALEY
Publisher: MCG CUSTOM
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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.
Consider the financial statements
alongside the notes presented by Simple
Things Industries and prepare the
statement of cash flows for the year
ended December 31, 2014.
Assets
Current:
Cash
Accounts Receivable
Inventory
Plant assets, net
Total Assets
Liabilities
Current:
Accounts payable
Accrued liabilities
Long-term notes payable
Stockholders' Equity
Common S tock
Retained earnings
Treasury stock
Total liabilities and stockholders' equity
Revenues and gains:
Sales revenue
Interest revenue
Dividend revenue
Gain on sale of plant assets
Total revenues and gains
Simple Things Industries Ltd.
Comparative Balance Sheet
December 31, 2014 and 2013
Expenses
Cost of goods sold
Salary and wages expense
Depreciation expense
Other operating expense
Interest expense
Income tax expense
Total expenses
Net Income/(Loss)
Simple Things Industries Ltd
Income Statement
Year Ended December 31,2014
Notes
Acquisition of plant asset during 2014
Sale proceeds from sale of plant asset
Receipt for issuance of…
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.
Chapter 29 Solutions
PRIN.OF CORPORATE FINANCE (LL) >CUSTOM<
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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