Problem 16.04 – Austin Grocers
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition and 10th Edition
Calculate the projected net income and expected growth in dividends.
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Calculate the projected net income and expected growth in dividends.
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Given the information on Plan I, Plan II, and the EBIT’s… figure out the EPS for each plan and the break-even EBIT.
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Given the inventory, collection, and payables deferral periods… determine the cash conversion cycle, the investment in accounts receivable, and inventory turnover.
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Given the inventory conversion period, average collection period, and payables deferral period… determine the day’s sales outstanding, the average amount of receivables, and both the nominal cost of trade credit and effective cost of trade credit.
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Given the projected quarterly sales, beginning accounts receivable, and three collection periods… find the cash collections in each of the four quarters and rework with the different collection periods.
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Calculate the potential sales at full capacity, determine Williamson’s target fixed assets sales ratio, and find the increase in fixed assets required to meet the target, given a capacity utilization and an increase in sales.
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Given the information on the different capital structures (Plan I & Plan II)… figure out the EPS of each plan, the break-even levels of EBIT, and what level of EBIT will EPS be identical for the plans. After, redo these with the new given corporate tax expense.
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What are the year-end inventory and inventory turnover for Jasper?
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Compute the operating cycle and cash cycles for the firm given sales and cost of goods sold and beginning and ending balances in inventory, accounts receivable, and accounts payable.
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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.
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