1.a) ABC Corporation is a no-growth firm whose sales fluctuate seasonally, causing total assets to vary from $310,000 to $410,000, but fixed assets remain constant at $260,000. If the firm follows a maturity matching (or moderate) working capital financing policy, what is the most likely total of long-term debt plus equity capital?

1.b) ABC has the following data. What is the firm's cash conversion cycle?Inventory conversion period =90 days. Average collection period =36 days. Payables deferral period =20 days.

1.c) ABC is looking for ways to shorten its cash conversion cycle. It has annual sales of $45,625,000, or $125,000 a day on a 365-day basis. The firm's cost of goods sold is 80% of sales. On average, the company has $7,500,000 in inventory, $5,750,000 in accounts receivable, and $2,750,000 in accounts payable. Its CFO has proposed new policies that would result in a 25% reduction in both average inventories and accounts receivable, and a 10% increase in average accounts payable. She also anticipates that these policies would reduce sales by 5%.What effect would these policies have on the company's cash conversion cycle?

1.d) ABC. buys on terms of 4/10, net 45. It does not take the discount, and it generally pays after 75 days. What is the effective (not nominal) annual percentage cost of its non-free trade credit, based on a 365-day year?