Problem 16.06 – Jasper Furnishings
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition and 10th Edition
What are the year-end inventory and inventory turnover for Jasper?
What are the year-end inventory and inventory turnover for Jasper?
Given the information on the production of batteries… determine the cash conversion cycle, reduction in working capital, and rework the cash conversion cycle given that the new production process is implemented.
Calculate the cash conversion cycle for the company, total asset turnover, and ROA.
What will be the forecast for Roberts’ year-end net income?
Determine total liabilities and new long-term debt financing needed.
Given the information on what management expects… determine the expected return on equity under a restricted policy, moderate policy, and relaxed policy – then determine if the assumptions are valid.
Given the information on the company after the market area grew… determine the amount of free cash that they would make from the lockbox system, the annual worth of the lockbox system, and the monthly charge they should pay for the lockbox system.
How large of a sales increase can the company achieve without having to raise funds externally?
Determine the year-end balance for receivables and its year-end days sales outstanding (DSO) ratio.
Given the information (sales forecast, estimated costs, etc.)… prepare a monthly cash budget using a very large grid.