Casa de diseno integrative case 5

REQUIRED a. Calculate Casa de Diseo's cash conversion cycle (CCC), the level of financing needed to support the firm's CCC, the cost of financing the firm's CCC, and the overall cost of working capital management for 1. Using the actual data for the year ended December 31, 2007 2. Assuming the company's averages for AAI, ACP, APP, and bad debes expense over the previous three years applied 3. Assuming the industry averages for AAI, ACP, and APP applied. 4. Assuming the averages for the west-coast manufacturers for AAl, ACP, and APP applied. What can you learn from an analysis of these results? analysis to support your answer in working capital and how this investment is financed. Is the bank's line b. Should Casa change their credit terms? Provide a complete financial c. Discuss how the seasonal nature of Casa's sales affects their investment of credit well secured? d. Based on your analysis, what recommendations would you offer Teresa Leal that would deal with the short-term financial management issues facing Casa de Diseo? REQUIRED a. Calculate Casa de Diseo's cash conversion cycle (CCC), the level of financing needed to support the firm's CCC, the cost of financing the firm's CCC, and the overall cost of working capital management for 1. Using the actual data for the year ended December 31, 2007 2. Assuming the company's averages for AAI, ACP, APP, and bad debes expense over the previous three years applied 3. Assuming the industry averages for AAI, ACP, and APP applied. 4. Assuming the averages for the west-coast manufacturers for AAl, ACP, and APP applied. What can you learn from an analysis of these results? analysis to support your answer in working capital and how this investment is financed. Is the bank's line b. Should Casa change their credit terms? Provide a complete financial c. Discuss how the seasonal nature of Casa's sales affects their investment of credit well secured? d. Based on your analysis, what recommendations would you offer Teresa Leal that would deal with the short-term financial management issues facing Casa de Diseo