Company X, a small company, has an average warehouse period of 120 days, an average collection period
Fantastic news! We've Found the answer you've been seeking!
Question:
Company X, a small company, has an average warehouse period of 120 days, an average collection period of 90 days, an average payment period to suppliers of 30 days and a net profit margin on sales of 3%. Sales amounted to 1,000,000 euros, with purchases accounting for 75% of sales.
1. Calculate your Working Capital Requirement (WCR).
2. How much will your NOF amount to if sales grow by 25%? and if they fall by 25%?
3. At what rate will you be able to grow without increasing your external financing?
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Sales 1000000 Cost of Goods Sold 75 of Sales 750000 ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
A small bank has an electronic safe which may be opened by certain combinations of the president, the two managers and the five tellers. Policy dictates that the safe may be opened if and only if (a)...
-
A small airplane has an airspeed (speed with respect to air) of 200 km/h. Find the time for the airplane to travel 1000 km if there is (a) No wind, (b) A headwind of 35 km/h, and (c) A tailwind of 35...
-
A small firm has an ending inventory of $52,000 as at December 31, 2012 and the following accounting information. a. Compute the monthly inventory turnover ratio for each of the twelve months. b....
-
State SQL query to satisfy the requirements below: Include the following columns: First Name Last Name Return all rows from the people table where the person's last name is between B and H. Use the...
-
BHP Billiton (GBR) is the worlds largest diversified natural resources company. The company extracts and processes minerals, oil, and gas from its production operations located primarily in...
-
Mr B aged 52 years, has earned rupees 75,00,000 out of his business. His ex-wife gifted him a car worth rupees 8 lakh. He spent a total of rupees 20 lakh during a family trip. He won a lottery of 16...
-
Use Figure 12.64 to answer each question. 1. Find the complement of Graph \(K\). 2. Identify an isomorphism between the complement of Graph \(K\) from part 1, and the complement of Graph H in YOUR...
-
This information relates to the Cash account in the ledger of Hawkins Company. Balance September 1'$16,400; ... Cash deposited'$64,000 Balance September 30'$17,600; ..... Checks written'$62,800 The...
-
Company A and company B issue convertible bonds with identical characteristics except that company A's bond is also callable. Both companies also have identical stock characteristics. a. The coupon...
-
Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a stay-at-home parent and Walt is a high school teacher. His W-2...
-
ABC Inc. has a single wholly-owned American subsidiary called US1 based in Los Angeles, California, which was acquired January 1, 2020. US1 submitted its financial statements for 2020 to ABC....
-
Analyze General motors stock and detailed introduction of the company(General motors). For example the firm's core business, products, target market, and competition. Feel free to add more aspects of...
-
Mary is a business owner and officer in her local Chamber of Commerce. She enjoys the training, networking opportunities, conferences, and outside speakers. Mary also likes having the business...
-
A major bank has a head office in an industrial park outside Regina, Saskatchewan. The head office has four departments: telephone banking, IT support, human resources, and transaction processing. At...
-
The exam allows students to relate theory to practice exploring an area of the course work as it relates to the real world. Students may choose to review an article of choice published in a business...
-
a. Project A costs $5,500 and will generate annual after-tax net cash inflows of $1,950 for five years. What is the payback period for this investment under the assumption that the cash inflows occur...
-
In Example 17.1 in the text the fixed ordering cost is $125, annual interest rate is 8%, the unit purchasing cost is $150, the unit storage cost is $5, the selling price is $225, annual demand is 1200
-
Shreemaya Hotel in !adore was facing a problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing...
-
The Unilever 2002 annual review stated: Total Shareholder Return (TSR) is a concept used to compare the performance of different companies stocks and shares over time. It combines share price...
-
On the Internet find the 2010 Transparency International Corruption Perception Index and determine the ranking of these countries. a. United States b. Japan c. Chad d. Iceland e. Denmark
-
In the 2010 Wells Report, what was the third most common way of detecting fraud? a. Tips b. Internal audits c. External audits d. By accident e. Reports from the police
Study smarter with the SolutionInn App