Question
1) Company A's for 2018 had $50008.08M in Sales, $35933.49M Cost of Goods Sold. The Account Receivable was $6086.44M. Finally, the Inventory and Accounts Payable
1) Company A's for 2018 had $50008.08M in Sales, $35933.49M Cost of Goods Sold. The Account Receivable was $6086.44M. Finally, the Inventory and Accounts Payable were $2182.68M and $13225.93M respectively. The company increases sales by 33% however keeping the same inventory. Applying the percentage of Sales Method, what would be the new CCC?
2) A company expects capital expenditures and depreciation to continue to offset each other and for both net income and increases in working capital to grow at 6.32% per year. The firm cost of capital is 16.85%. If the firm was able to reduce its annual increase in working capital by 31.05%, What would be the effect on firm's value?. The firm Free Cash Flow and Working Capital for the year was 1.54M and 25.13M respectively
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started