PRIN.OF CORPORATE FINANCE (LL) >CUSTOM<
12th Edition
ISBN: 9781260439137
Author: BREALEY
Publisher: MCG CUSTOM
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Chapter 29, Problem 2PS
Summary Introduction
To determine: The impact of each transaction on cash cycle.
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.
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In the case of decrease the operating cash cycle, which one of the following actions should be taken?
A Delay payments to suppliers B Increase the inventory level while maintaining constant salesC Increase the period of time for which credit is granted to customers
D Decrease the rate at which the average inventory is sold
Hamish plc expects to have an overdraft at the end of the next financial year. Which
one of the following courses of action would increase the bank overdraft?
Select one:
A. Increasing the credit period allowed to customers.
B. Reducing the level of inventory held.
OC. Renting, instead of purchasing, the new company vans.
D. Increasing the time taken to pay suppliers.
Bulldogs inc. will least likely experience which of the following if the firm shifts its credit terms from n/25 to 3/10, n/25
a. the computed days sales outstanding will decrease
b. the percentage of credit sales from the total sales revenue will increase
c. cash conversion cycle will tend to increase
d. decrease in short-term borrowings
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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