Q9

LUID. Calculate the cash conversion cycle for this company (10) Sret for Procter & Gamble for In the last six months of 2018 your small manufacturing company has booked the following items (all figures include all taxes). a. Booked sales of $1,750,000 b. Received cash payments of $1,500,000 c. Paid salaries of $410,000 d. Purchased raw materials components for $350,000 e. Booked depreciation of $70,000 (plant and equipment) f. Paid the auditors $ 100,000 9. Purchased general office supplies for $80,000 VAT on goods is 20% and services 12.5% Calculate the net VAT payment due for the period. 80% of sales were domestic (10) You plan to issue $15 million in 270 day commercial paper into a market that should be happy to invest in your company. If issue costs are $60,000 and you discount at 5%, what is your cost of borrowing to you? (6) You are planning to manufacture a new cordless Induction food processor. As this is now technology, it will cost you $4 million to develop and you plan to manufacture for three years. Due to the rapidly changing nature of induction technology you do not wish to plan any more than three years ahead. Competition is fierce and you have estimated your annual expenses and sales etc as per the following with estimates for changes in good of bad scenarios a. Market size b. Market share c. Unit Price d. Variable c.p.u. e. Fixed costs 70,000 + 7% 0.30 + 10% $500 + 5% $270 + 12% $400,000 + 13% www.euriedu