Jawaban Problems dari Buku Financial Management Theory and Practice

•  A chain of appliance stores, APP corporation, purchases inventory with a net price of $500,00 each da, the company purchases the inventory under the credit terms of 2/15, net 40, APP always takes discount, but takes the full 15 days to pay bills

          What is the average accounts payable for APP?

           

                  (answer)

          Average account payable       = net inventory per day x days in discount period

          Average account payable       = $500,000 x 15 = $7,500,000

•       Zocco Corporation has an inventory conversion period of 75 days, a receivables collection period of 38 days, and a payables deferral period of 30 days

a.      What is the length of the cash conversion cycle?

b.      If Zocco’s annual sales are $3,421,875 and all sales are on credit, what is the investment in accounts receivable?

c.       How many times per year does Zocco turn over its inventory?

(answer) 

a)   cash conversion cycle = inventory period + receivables collection period - payable deferral period        

                                                    = 75 + 38 – 30 = 83 days.

b)      Average sales per day     = (annual sales / 365)

= $3,421,875/365

= $9,375

Investment in receivables = Average collection period * Average sales per day

=  38 ´ $9,375

= $356,250

c)      Zocco inventory turnover = 365/75 = 4.87x

•      Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows:

Price to public $5 per share

Number of shares 3 million

Proceeds to Beedles $14,000,000

The out-of pocket expenses incurred by Security Brokers in the design and distribution of the issue were $300,000

What profit or loss would Security Brokers incur if the issue were sold to the public at an average price of?

a.       $5 per share?

b.      $6 per share?

c.       $4 per share?

(answer) 

a)      $5 per share

Profit/Loss = (Price per share * Number of shares) – Proceeds to Beedles – out-of pocket expenses

Profit/Loss = ($5.00 * 3,000,000) – $14,000,000 – $300,000

Profit/Loss = ($15,000,000) – $14,000,000 – $300,000

Profit/Loss = $700,000

b)      $6 per share?

Profit/Loss = (Price per share * Number of shares) – Proceeds to Beedles – out-of pocket expenses

Profit/Loss = ($6.00 * 3,000,000) – $14,000,000 – $300,000

Profit/Loss = ($18,000,000) – $14,000,000 – $300,000

Profit/Loss = $3,700,000

c)      $4 per share

Profit/Loss = (Price per share * Number of shares) – Proceeds to Beedles – out-of pocket expenses

Profit/Loss = ($4.00 * 3,000,000) – $14,000,000 – $300,000

Profit/Loss = ($12,000,000) – $14,000,000 – $300,000

Profit/Loss = - $2,300,000