Determine the amount of capital a company needs in the future using the following five-year projected net cash flow analysis. (No interest rate was given :( )

A. The company described below is struggling to find sufficient cash to meet their short-term needs. Based on your textbook, in what general ways (at least 3) could they free up cash based on the information below?

XYZ, Inc. has the following financial information:

Revenues: $45,000,000

COGS: $13,500,000

Inventory: $7,500,000

Inventory turns: _____

Average industry inventory turns: 2.75

Accounts receivable: $11,250,000

Days receivable: _____

Average industry days receivable: 60

Accounts payable: $1,350,000

Days payable: _____

Average industry days payable: 60

B. Calculate Inventory Turns, Days Receivable and Days Payable

C. In the scenario related to XYZ, Inc above, calculate the Cash Gap? What does that number mean?

D. Using the information you have calculated and that was provided for XYZ, Inc., what is the ideal cash gap to which the company should strive?

E. If the annual interest rate on a loan taken out to cover the cash gap is 6%, how much money would the company save if it could change its business practices and match the ideal cash gap?

Quick and correct responses will receive high ratings!

Thanks!

Year 1 -$250

Year 2 -$100

Year 3 -$50

Year 4 $100

Year 5 $250

What are the pros and cons of raising this capital in a single round?

Please give a typed clear and concise answer plz.

Quick and correct answers will be given high ratings. Thank you!