1) In what was does working capital management impact a firm's value?

2) What is net working capital?

3) You anayze a firm's account and find that it has 30 days of ccounts receivable, 30 days of inventroy, and 30 days of accounts payable on the books at year end. What is the best estimate of its cash conversation cycle?

4) All of the foolowing are componenets of the cash conversion cycle except:

a) Accounts receivable

b) Fixed Assets

c) Inventory

d) Accounts payable

5)Virtual model allows shoebuy to benefit in which of the following dimensions?

a) Conserve capital

b) Reduce Headcount

c) Save on costs of warehouse space

d) All of the above

6) True or false? All else equal, it is better for a firm to have a high cash conversation cycle than a low cash conversion cycle.

7) If its average age of inventory is 52 days, how long is its average collection period? If its average payment period is 38 days, what is its cash conversion cycle? How long is Sharam's average collection period?

8) Icy Treats, Inc. is a seasonal business that sells frozen desserts. At the peak of its summer selling season the firm has 33880 in cash, 121000 in inventory, 67,760 in accountsrecievable, and 62,920 in accounts payable. During the slow winter period the firm hol's $9,680 in cash, $53,240 in inventory, $38,720 in accounts recievable, and $32,670 in accounts payable. Calculate Icy Treats' minimum and peak funding requirements. What is Icy Treats' minimum funding requirement?

9) Mama Leone's Frozen pizzas uses 41,000 units of cheese per year. Each unit costs $2.50. The ordering cost for the cheese is $295.00 per order, and its carrying costs is .59 per unit per year. Calculate the firm's economic order quantity for the cheese. mama leone's operates 250 days per year and maintains a minimum inventory level of 5 days' worth of cheese. If the lead time to recieve orders of cheese is 3 days, calculate reorder point. What is the EOQ that minimizes the total inventory costs?

10) Forrestor Fashions as annual credit sales of 200,000 units with an average collection period 66 days. The company has a per-unit variable cost of $24 and a per-unit sale price of $36.0 Bad debuts currently are 4% of slaes. The firm estimates that a proposed relaxtion of credit standards would not affect its 66-day average collection period but would increase bad debts to 6.00% of sales, which would increase to 240,000 units per year. Forrester requires a 16% return on investments. Show all necessary calculations required to evaluate Forrestor's proposed relaxtion of credit standards. What is the additional profit contribution from an increase in sales?

11) Klein's tools is considering offering a cash discount to speed up the collection of accounts receivable. Currently the firm has an average collection perid of 66 days, annual sales are 31,000 units, the per-unit price is $44, and the per-unit variable cost is $33. A 1% cash discount i being considered. Klein's tools estimates that 78% of its customers will take 1% discount. If sales are expected to rise to 33,000 units per year and the firm has a 14% required rate of return, what minimum average collection period is required to approave the cash discount plan> What is the minimum average collection period required to approve the cash discount plan?