Questions from Financial Markets

Q: Genatron Manufacturing expects its sales to increase by 10 percent in 2018

Genatron Manufacturing expects its sales to increase by 10 percent in 2018. Estimate the firm’s external financing needs by using the percent-of-sales method for the 2017 data. Assume that no excess c...

Q: Rework Problem 8 assuming that Genatron Manufacturing expects its sales to increase

Rework Problem 8 assuming that Genatron Manufacturing expects its sales to increase by 20 percent in 2018. What is the amount of external financing needed? Data from Problem 8: Genatron Manufacturin...

Q: Pretty Lady Cosmetic Products has an average production process time of 40

Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an...

Q: With concerns of increased competition, Genatron is planning in case its

With concerns of increased competition, Genatron is planning in case its 2018 sales fall by 5 percent from their 2017 levels. If cost of goods sold and the current asset and liability accounts decreas...

Q: In problem 10, we assumed the current asset and liability accounts

In problem 10, we assumed the current asset and liability accounts decrease proportionately with Genatron’s sales. This is probably unrealistic following a decline in sales. What will be the impact on...

Q: Suppose Eastnorth Manufacturing is planning to change its credit policies next year

Suppose Eastnorth Manufacturing is planning to change its credit policies next year. It anticipates that 10 percent of each month’s sales will be for cash; two-thirds of each month’s receivables will...

Q: Eastnorth’s suppliers are upset that Eastnorth takes two months to pay their

Eastnorth’s suppliers are upset that Eastnorth takes two months to pay their accounts payable; they demand that in the following year Eastnorth pay its bills within 30 days, or one month after the pur...

Q: Of its monthly sales, The Kingsman Company historically has had 25

Of its monthly sales, The Kingsman Company historically has had 25-percent cash sales with the remainder paid within one month. Each month’s purchases are equal to 75 percent of the next month’s sales...

Q: 1. The risk-free interest rate can be expressed as

1. The risk-free interest rate can be expressed as a function of which of the following? a. Real rate of interest and the inflation premium b. Real rate of interest, inflation premium, and the defau...

Q: Redo Problem number 14, using the monthly sales estimates listed in

Redo Problem number 14, using the monthly sales estimates listed in the text. Data from Problem 14: Of its monthly sales, The Kingsman Company historically has had 25-percent cash sales with the rem...