Questions from Corporate Finance

Q: In fiscal 2012 and 2013, Caterpillar’s financial statements included the following

In fiscal 2012 and 2013, Caterpillar’s financial statements included the following items. What was Caterpillar’s cash cycle?

Q: After a record harvest, grain silos are full to the brim

After a record harvest, grain silos are full to the brim. Are storage costs likely to be high or low? What does this imply for the net convenience yield?

Q: Abbreviated financial statements for Archimedes Levers are shown in Table 29.

Abbreviated financial statements for Archimedes Levers are shown in Table 29.13 on the next page. If sales increase by 10% in 2017 and all other items, including debt, increase correspondi...

Q: What is the most common form of ownership of corporations worldwide?

What is the most common form of ownership of corporations worldwide?

Q: A firm is considering several policy changes to increase sales. It

A firm is considering several policy changes to increase sales. It plans to increase the variety of goods it keeps in inventory, but this will increase inventory by $100,000. It will offer more libera...

Q: If a firm pays its bills with a 30-day delay

If a firm pays its bills with a 30-day delay, what fraction of its purchases will be paid in the current quarter? In the following quarter? What if the delay is 60 days?

Q: What effect will each of the following have on the cash cycle

What effect will each of the following have on the cash cycle? a. The inventory turnover falls from 80 to 60 days. b. Customers are given a larger discount for cash transactions. c. The firm adopts...

Q: Listed below are six transactions that Dynamic Mattress might make. Indicate

Listed below are six transactions that Dynamic Mattress might make. Indicate how each transaction would affect (1) cash and (2) working capital. The transactions are a. Pay out an extra $10 million c...

Q: State how each of the following events would affect the firm’s balance

State how each of the following events would affect the firm’s balance sheet. State whether each change is a source or use of cash. a. An automobile manufacturer increases production in response to a...

Q: Here is a forecast of sales by National Bromide for the first

Here is a forecast of sales by National Bromide for the first four months of 2016 (figures in $ thousands): On the average 50% of credit sales are paid for in the current month, 30% are paid in the ne...