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Q4. (A) Gibson Co. has the following Balance Sheet details: dividend, how would the accounts change? (5 marks) (B) Assume a company has 750,000 outstanding

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Q4. (A) Gibson Co. has the following Balance Sheet details: dividend, how would the accounts change? (5 marks) (B) Assume a company has 750,000 outstanding shares that sell for 585 per share, what will be the share price and outstanding shares if the company has a two-for-five stock split? (5 marks) (C) Brown's Led. currently has an operating cycle of 80 days. It is planning some operational changes that are expected to decrease the receivable collection period by I day and decrease the inventory turn period by 3 days. The payable turnover ratio is expected to increase from 9 to 12 times per year. Assume a 360-day year. a. If all of these changes are adopted, what will be the length of Brown's L.d. new operating and cash cycle? (5 marks) b. After adopting the above mentioned operational changes, Brown's Lid got the offer of 10 percent discount from their creditors on payment of their dues within 25 days. If Brown's 2 Ltd accepts this offer, what will be the Iength of Brown's Ltd. new operating and cash cycle

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