6. The Jamison Corporation sells on credit terms of net 50. Its accounts are annual credit sales are $5 million, what is the company's balance sheet amount in accous on average, 10 days past due. If 7. Centrix Corporation has an inventory period of 120 day, a receivables period of 40 days. period of 50 days. (Assume 1 year 365 days) and a payable (a) What is the length of the firm's cash cycle or cash conversion cycle? (b) What is the length of the firm's operating cycle? 8. Metron Inc, a national chain of fruit stands has an inventory of 75 days, and an account receivables period of 30 days. The CFO wants order to reduce the receivables period to 18 days. What will happen to the firm's cash cycl days, an accounts payable period of 60 to implement a discount plan in (a) Will it rise, fall or stay the same? (b) If so, from what to what? 9. Your company purchased $10,000 worth of in net 45. ventory on January 2"d on credit. The terms of sale are 2/20 (a) How much will you pay if payment is made on January1n (b) How much will you pay if payment is made on January 30h2 10, Jebox Corporation has a target capital structure of 50% common stock, 10 percent preferred stock, and 40 percent debt. Its cost of equity is 14 percent, the cost of preferred stock is 8 percent, and the cost of debt is 7.5 percent. The relevant tax rate is 35 percent. What is Jebox's WACC? 11. The Metro Corporation projects annual sales of 1000 designer bags. The fixed order cost of bags is $8o. The carrying cost per bag is $4. (Assume 1 year 365 days) (a) What is the most economic quantity (EOQ) of bag A should Metro Corporation order at a time? (b) What is the optimal average inventory of bags they should carry? (c) What is the total optimal carrying cost (TCC)? (d) What is the total optimal ordering or re-stocking cost (TOC)? (e) What is the lowest total inventory cost (TIC)? (f) What is the optimal number of orders? (g) If it takes 10 days to place an order and get it delivered calculate the re-order quantity or point using information. (h) Assuming the Metro Corporation now wants to carry an extra stock of 100 units of a safety stock, what is the new EOQ? i) Using information in (h) above calculate the new optimal total inventory cost