Student: Date: Instructor: Course: FIN-320-R2880 Principles of Finance 19EW2 Assignment: 4-2 MyFinanceLab Assignment 2. (Related to Checkpoint 3.2) (Working with the balance she balance sheet) The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $50, 100, net fixed assets of $249.300. current liabilities of $28,900, and long-term debt of $101,300. a. Calculate Caraway's stockholders' equity. b. What is the firm's net working capital? c. If Caraway's current liabilities consist of $21,600 in accounts payable and $7,300 in short-term debt (notes payable), what is the firm's net working capital? a. Calculate Caraway's stockholders' equity. Caraway's stockholders' equity is $ (Round to the nearest dollar.) b. What is the firm's net working capital? The firm's net working capital is $ (Round to the nearest dollar.) c. If Caraway's current liabilities consist of $21,600 in accounts payable and $7,300 in short-term debt (notes payable), what is the firm's net working capital? (Select the best choice below.) O A. The firm's net working capital will not change, i.e., net working capital = $21,200. O B. The firm's net working capital will change by $21,600, i.e.. net working capital = $42.800. OC. The firm's net working capital will change by $21,600 + $7.300, i.e., net working vapital = $50,100. OD. The firm's net working capital will change by $7,300, i.e., net working capital = $28,500. Student Date: Instructor: tonn Course: FIN-320-R2880 Principles of Finance 19EW2 Assignment: 4-2 MyFinanceLab Assignment 10. (Efficiency analysis) The Brenmar Sales Company had a gross profit margin (gross profits + sales) of 29 percent and sales of $8.1 million last year. 74 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.4 million, its current liabilities equal $305,000, and it has $106,400 in cash plus marketable securities. a. If Brenmar's accounts receivable equal $563,300, what is its average collection period? b. If Brenmar reduces its average collection period to 25 days, what will be its new level of accounts receivable? c. Brenmar's inventory turnover ratio is 8.3 times. What is the level of Brenmar's inventories? a. If Brenmar's accounts receivable equal $563,300, what is its average collection period? The company's average collection period will be days. (Round to two decimal places.) b. If Brenmar reduces its average collection period to 25 days, what will be its new level of accounts receivable? The new level of accounts receivable will be $ . (Round to the nearest dollar.) c. Brenmar's inventory turnover ratio is 8.3 times. What is the level of Brenmar's inventories? Brenmar's inventories will be $ . (Round to the nearest dollar.) ylitemnrnd pearsoncmg.com/api/v1/print/en-us/finance Student: Date: Instructor: Course: FIN-320-R2880 Principles of Finance 19EW2 Assignment: 4-2 MyFinanceLab Assignment 2. (Related to Checkpoint 3.2) (Working with the balance she balance sheet) The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $50, 100, net fixed assets of $249.300. current liabilities of $28,900, and long-term debt of $101,300. a. Calculate Caraway's stockholders' equity. b. What is the firm's net working capital? c. If Caraway's current liabilities consist of $21,600 in accounts payable and $7,300 in short-term debt (notes payable), what is the firm's net working capital? a. Calculate Caraway's stockholders' equity. Caraway's stockholders' equity is $ (Round to the nearest dollar.) b. What is the firm's net working capital? The firm's net working capital is $ (Round to the nearest dollar.) c. If Caraway's current liabilities consist of $21,600 in accounts payable and $7,300 in short-term debt (notes payable), what is the firm's net working capital? (Select the best choice below.) O A. The firm's net working capital will not change, i.e., net working capital = $21,200. O B. The firm's net working capital will change by $21,600, i.e.. net working capital = $42.800. OC. The firm's net working capital will change by $21,600 + $7.300, i.e., net working vapital = $50,100. OD. The firm's net working capital will change by $7,300, i.e., net working capital = $28,500. Student Date: Instructor: tonn Course: FIN-320-R2880 Principles of Finance 19EW2 Assignment: 4-2 MyFinanceLab Assignment 10. (Efficiency analysis) The Brenmar Sales Company had a gross profit margin (gross profits + sales) of 29 percent and sales of $8.1 million last year. 74 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.4 million, its current liabilities equal $305,000, and it has $106,400 in cash plus marketable securities. a. If Brenmar's accounts receivable equal $563,300, what is its average collection period? b. If Brenmar reduces its average collection period to 25 days, what will be its new level of accounts receivable? c. Brenmar's inventory turnover ratio is 8.3 times. What is the level of Brenmar's inventories? a. If Brenmar's accounts receivable equal $563,300, what is its average collection period? The company's average collection period will be days. (Round to two decimal places.) b. If Brenmar reduces its average collection period to 25 days, what will be its new level of accounts receivable? The new level of accounts receivable will be $ . (Round to the nearest dollar.) c. Brenmar's inventory turnover ratio is 8.3 times. What is the level of Brenmar's inventories? Brenmar's inventories will be $ . (Round to the nearest dollar.) ylitemnrnd pearsoncmg.com/api/v1/print/en-us/finance
