Question 106

A manufacturing company is working to improve its cash conversion cycle. Factory production has increased over the last year to increase inventory levels. They have an inventory turnover of 3.1 and asset turnover of 5.0. The company has a days' payable of 30 and a days' receivable of60. It has started enforcing its net 30 terms and placed customers with balances outstanding more than 45 days on credit hold. As a result, the company collected receivables quicker but it suffered a 10% loss in sales. What can the company do to reduce its cash conversion cycle?
  • Question 107

    Which two of the following are methods for concentrating weekend deposits in a field deposit system?
    1.Using a wire transfer for the funds on Monday 2.Anticipating deposits and initiating an ACH on Friday 3.Initiating an ACH cash concentration transaction on Thursday
    4.Using a multibank lockbox network
  • Question 108

    A real estate development company has excess cash that it would like to invest in one of its properties:
    -Property A has shown an ROI of 40%, a residual income of $25,675, and an EVA of $32,678. -Property B has shown an ROI of 45%, a residual income of $27,635, and an EVA of $29,523. -Property C has shown an ROI of 55%, a residual income of $22,658, and an EVA of $30,678. -Property D has shown an ROI of 52%, a residual income of $19,675, and an EVA of $31,523.
    In which property should the company invest?
  • Question 109

    ABC Company is considering investing in new production technology. ABC has projected that the investment would add $5,000,000 in additional operating profit and that the resulting balance sheet would show $7,000,000 in long-term debt and $11,000,000 in total equity. ABC has a 34% tax rate and a 10% WACC. Which of the following is the investment's EVA?
  • Question 110

    Which of the following ASC X12 transactions is used to confirm the receipt and compliance of transmitted sets?