Finance – using EOQ model determine how many order

Finance – using EOQ model determine how many order

Finance   – using EOQ model determine how many orders will a company place per year given the following

Subject: Business    / Finance
Question

QUESTION 16

A company sells 157,441 units per year. Fixed costs per order are $125 and carrying cost is $28 per unit per year. If management uses an EOQ model, how many orders will it place per year? Enter your answer rounded off to two decimal points.

1 points

QUESTION 17

XYZ Company’s credit terms are 1/3 net 31. The company estimates that 65% of the customers will take the cash discount. What is the average collection period? Enter your answer rounded off to TWO decimal points.

1 points

QUESTION 18

ABC Company’s last dividend was $2.6. The dividend growth rate is expected to be constant at 9% for 4 years, after which dividends are expected to grow at a rate of 5% forever. The firm’s required return (rs) is 16%. What is its current stock price (i.e. solve for Po)?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 19

ABC Corp. currently has an inventory turnover of 10, a payables turnover of 6.51, and a receivables turnover of 13.92. How many days are in the operating cycle? Enter your answer rounded off to two decimal points.

1 points

QUESTION 20

At the start of the day, the ledger balance and the available balance for ABC Company was $6,101. During the day, the firm wrote two checks in the amounts of $321 and $715. The firm deposited two checks: one check for $898 and another check for $169. What is the amount of the collection float as of the end of the day?

1 points

QUESTION 21

The terms of the sale were 1/16, net 37. What is the effective annual rate of interest? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

1 points

QUESTION 22

ABC Company has annual sales of $166,215 and cost of goods sold of $63,541. The average accounts receivable balance is $12,877. How many days on average does it take the firm to collect its accounts receivable? That is, what is the AR Period? Assume 365 days.Enter your answer rounded off to two decimal points

1 points

QUESTION 23

You are given the following quotes:U.S. dollar/Brazilian Real = 0.321U.S. dollar/Australian Dollar = 0.8222U.S dollar/Chinese Yuan = 0.1547What is the Brazilian Real/Australian Dollar cross rate?Enter your answer rounded off to FOUR decimal points.

1 points

QUESTION 24

ABCCompany writes45checks a day for an average amount of$711each.These checks generally clear the bank in7days.In addition,the firmgenerally receives an average of$13,450a day in checks that aredeposited immediately.Deposited funds are available in1days.Whatis the firm’s netfloat?

1 points

QUESTION 25

ABC Company has the following projected sales:
Month
Sales
June    $5,240
July    $5,311
August    $12,187
September

$23,565

25% of the sales are collected in the same month. 13% of the sales are collected after one month, 7% of the sales are collected after two months, and the remainder are collected after three month.
What is the amount of the September collections?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.