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I would like some help solving these questions. There are 2 PDF files attached. If someone could please help me would be appreciated. Assignment #3

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I would like some help solving these questions. There are 2 PDF files attached. If someone could please help me would be appreciated.

image text in transcribed Assignment #3 FINA 3000 Solve the following Questions 1. A company has a current and quick ratio of 2.8 and 1.6 respectively. If the company's current liabilities amount to $120 million, the amount of inventory that the company has is: 2. Using the following information $ million Credit sales 30,000 Cost of goods sold 25,000 Accounts receivable 4,000 Opening inventory 5,000 Closing inventory 2,500 Accounts payable 2,000 a) What is the operating cycle for the company? b) What is the net operating cycle for the company? 2. An analyst gathered the following information: Inventory = $136,000 Cost of goods sold = $721,000 Number of days of receivables = 42 days Number of days of payables = 33 days What is the company's operating cycle? 2. An analyst gathered the following information: Net sales = $775,000 ($370,000 of cash sales) Accounts receivable = $121,500 Number of days of inventory = 115.2 Purchases = $112,450 Accounts payables = $31,230 What is the company's cash conversion cycle? Group Assignment FINA 3000 Answer the following TWO questions: Q#1: Atlas Corporations is expected to be low on liquidity by $1.5 million for the coming 2 months. The company's directors are evaluating the following options: Option 1: Commercial paper at 7% with a dealer's commission of 1/5% and a backup line at cost of 1/2%. Option 2: Drawing on a line of credit at 7% with a 0.3% commitment fee on the full amount: one-twelfth of the commitment fee is allocated to each month. Option 3: Banker's acceptance at 8% which is an all-inclusive rate. Which of the above options is the least costly to Atlas Corporations? Q#2: The following information is available for two companies, Mercury Inc and Jupiter Inc. Number of units sold Sales price per unit ($) Variable cost per unit ($) Fixed operating costs ($) Fixed financial costs ($) Mercury Inc. 300,000 20 7 1,000,000 500,000 Jupiter Inc. 300,000 25 10 1,100,000 500,000 Which of the following statements is least accurate? Strength your answer by calculations a) Mercury Inc.'s net income is more sensitive to changes in operating income as compared to that of Jupiter Inc. b) Mercury Inc.'s operating income is less sensitive to changes in the number of units sold as compared to that of Jupiter Inc. c) Jupiter Inc.'s operating income is less sensitive to changes in the number of units sold as compared to that of Mercury Inc

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