Spontaneous sources of funds, accruals When Waverly Wear, Inc., merged with Southerly, Inc., Waverly's employees were switched from a weekly to a biweekly pay period. Waverly's weekly payroll amounted to $383,900. The cost of funds for the combined firms is 15.36%. What annual savings, if any, are realized by this change of pay period? The annual savings that the firm can realize is $ (Round to the nearest dollar.)
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- Suppose that you have generated the estimates listed below from a pro forma analysis for a company that had requested a three year loan. The loan is a $1.5 million term loan with the equal annual payments of principals. The P&I payments are due at the end of each year with the annual interest rate = Prime rate + 1.5%. Yr.1 Yr. 2 Yr. 3 Capital expenditure 250,000 125,000 75,000 Cash dividends 140,000 140,000 140,000 Cash flow from operations before interest expense 750,000 780,000 800,000 Assuming the Prime rate = 7.5% each year. What will be the interest payment at year 3? a). 25,000 b). 50,000 c). 45,000 d). 53,000 e). 10,000Leyton Lumber Company has sales of $11 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $1.43 million. Assume 365 days in year for your calculations. What is Leyton's DSO? Round your answer to two decimal places. days What would DSO be if all customers paid on time? Do not round intermediate calculations. Round your answer to two decimal places. days How much capital would be released if Leyton could take actions that led to on-time payments? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest cent.$6. Exodus Corp. is analyzing the performance of its cash management. On the average, the firm holds inventory 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has a current annual outlay of P1,960,000 on operating cycle investments. Exodus currently pays 10 percent for its negotiated financing. (Assume a 360-day year.) Note: Kindly input your answer with comma. Example: 10,000 Calculate the following: a. Cash conversion cycle b. Operating cycle. c. Daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days.
- The management of Amex Corp. plans to meet a future capital expenditure by depositing $25,000 into a savings account. Annually thereafter, for 15 years, the firm intends to increase this annual savings amount by 5%. The account is expected to earn 8% interest annually. Required: Compute the value of Amex’s investment today.A company estimates that it will need $375,000 in 11 years to replace an important machine. If it establishes a sinking fund, by making fixed monthly payments into an account paying 8.4% compounded monthly, a) how much should each payment be? A b) How much of the $375,000 that is in the account in the end will be interest?Leyton Lumber Company has sales of $10 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $2.25 million. Assume 365 days in year for your calculations. What is Leyton's DSO? Do not round intermediate calculations.Round your answer to two decimal places. days What would DSO be if all customers paid on time? Do not round intermediate calculations. Round your answer to two decimal places. days How much capital would be released if Leyton could take actions that led to on-time payments? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest cent.$
- A company estimates that it will need $52,000 in 18 years to replace a computer. If it establishes a sinking fund by making fixed monthly payments into an account paying 6.3% compounded monthly, how much should each payment be? FORES: O OF Save A company estimates that it will need $52,000 in 18 years to replace a computer. If it establishes a sinking fund by making fixed monthly payments into an account paying 6.3% compounded monthly, how much should each payment be?A company can earn 8.5% on amount deposited now. For an IT project, the company predicts to have these components costs: Yearl $25,000 Cost associated with year 1 reduced by 21% Cost associated with year augmented by 3% Year2 Year6 How much money should the company deposit now. At the end of each year, try to analyze the balance (the available amount of money against the inflow).Use this information for Wyoming Corporation to answer the questions that follow. The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for five years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Year Income fromOperations Net CashFlow 1 $18,750 $93,750 2 18,750 93,750 3 18,750 93,750 4 18,750 93,750 5 18,750 93,750 The present value index for this investment is
- Use this information for Wyoming Corporation to answer the question that follow.The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for five years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Year Income fromOperations Net CashFlow 1 $18,750 $93,750 2 18,750 93,750 3 18,750 93,750 4 18,750 93,750 5 18,750 93,750 The cash payback period for this investment isThe following table includes quarterly working capital levels for your firm for the next year. (Click on the following icon in order to copy the contents into a spreadsheet.) ($000) Cash 1 110 208 205 96 2 Quarters 110 105 499 104 3 110 109 904 109 4 110 604 47 99 Accounts Receivable Inventory Accounts Payable If you want to limit your maximum short-term borrowing to $506,000 and maintain a minimum cash balance of $110,000, how much excess cash must you carry? The excess cash needed is $ (Round to the nearest dollar.)Assume the operation of your business resulted in sales of $730,000 last year. Year-end receivables are $100,000. You are considering factoring the receivables to raise cash to help finance your venture’s growth. The factor imposes a 7 percent discount and charges an additional 1 percent for each expected ten-day average collection period over thirty 30 days. D. If the $730,000 in sales last year were evenly distributed throughout the year, an average $100,000 in receivables outstanding would imply what average collection period? Given the original terms stated in the problem, what dollar amount would you expect to receive for your receivables?