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a) Describe the three main short-term financing strategies and give examples! (10 points) The following is the working capital information for the company Giuliani: Account
a) Describe the three main short-term financing strategies and give examples! (10 points) The following is the working capital information for the company Giuliani: Account Beginning Balance Ending Balance Inventory 2600 2 890 Accounts receivable 3 222 2 800 Accounts payable 2 500 2670 Net sales Cost of goods sold 24 589 19 630 b) If all sales are on credit, what are the firm's operating and cash conversion cycles? (10 points) c. Micro Generator sells about 2 000 generators a year. The cost of placing an order with their supplier is 750 and the inventory-carrying costs are 170 for each generator. They always like to maintain safety stock of 15. A). What is the firm's EOQ? B). How many orders will the firm need to place this year? C) What is the average inventory for the season? (10 points) a) Describe the three main short-term financing strategies and give examples! (10 points) The following is the working capital information for the company Giuliani: Account Beginning Balance Ending Balance Inventory 2600 2 890 Accounts receivable 3 222 2 800 Accounts payable 2 500 2670 Net sales Cost of goods sold 24 589 19 630 b) If all sales are on credit, what are the firm's operating and cash conversion cycles? (10 points) c. Micro Generator sells about 2 000 generators a year. The cost of placing an order with their supplier is 750 and the inventory-carrying costs are 170 for each generator. They always like to maintain safety stock of 15. A). What is the firm's EOQ? B). How many orders will the firm need to place this year? C) What is the average inventory for the season? (10 points)
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