Problem 20.05 – Terms of Sale
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Given the terms and net… find the effective rate for the different scenarios.
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Given the terms and net… find the effective rate for the different scenarios.
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Given the collection period and daily investments in receivables… find the receivables turnover and annual credit sales.
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Calculate the effect of the firm’s cash cycle after changes.
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Given units sold, price per unit, the terms, net, and discount… figure out average collection period, receivables turnover, and average receivables.
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Given net, average days past due, and annual credit sales… figure out the balance sheet amount in accounts receivable.
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Given the amount of engines ordered, the variable cost, credit price, uncollected orders, and required return… figure out both the NPV’s and break-even probabilities.
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Given the amount of switches used per week, carrying cost, and the fixed order cost… find the current carrying cost, current order cost, and current economic order quantity.
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Given the beginning amount of phasers each week in stock, carrying cost per phaser, and fixed order cost… find out the current total carrying cost, restocking cost, economic order quantity, and if the company should increase or decrease its order size.
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Given the information on both policies… figure out the NPV.
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Calculate the interest rates per month at 1%, 1.5%, and for only new customers.
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