Problem 19.02 – Sources and Uses of Cash
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Calculate a statement of cash flow from the table provided.
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Calculate a statement of cash flow from the table provided.
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Given the information on the mail-order firm… figure out the average daily float, weighted average delay, maximum pay, the daily cost of float, and price to reduce float.
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Given the average number of payments, the value of payment, variable lockbox fee, and daily interest rate… figure out the PV, NPV, net cash flow per day, and net cash flow per check.
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Given days to receive and deposit checks, reduced deposit time, average daily collections, and required return… figure out the outstanding cash balance reduction, daily dollar return, and the maximum monthly charges.
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Given the information on the lockbox system… figure out the NPV of the new system and the NPV with the annual fixed charge.
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When is a toy store, delaying payment for toy purchases and stocking up in October for a December sales surge, most likely to experience negative operating cash flow?
Which scenario is least likely for a firm consistently extending its payables?
What kind of firm is typically considered when it employs a relaxed approach to its total capital requirement?
What is the expected behavior for a firm employing a relaxed long-versus short-term borrowing strategy at the height of sales demand?
What is the total capital requirement typically for most profitable firms?