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Manal Elkhoshkhany
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1. Icy Treat, Inc. is a seasonal business that sells frozon

Customer Question

1. Icy Treat, Inc. is a seasonal business that sells frozon desserts. At the pek of its summer selling season the firm has $35,000 in cash, $125,000 in inventory, $70,000 in accounts receivable, and $65,000 in accounts payable. During the slow winter period the firm holds $10,000 in cash, $55,000 in inventory, $40,000 in accounts receivable, and $35,000 in accounts payable. calculate Icy Treats' minimum and peak funding requirements.
2. Forrester Fashion has annual credit sales of 250,000 units with an average collection period of 70 days. The company has a per-unit variable cost of $20 and a per unit sales price of $30. Bad debts currently are 5% of sales. the firm estimates that a proposed relaxation of credit standards would not affects its 70-day average collection period but would increase bad debts of 7.5% of sales, which would increase to 3000,000 units per year. Forrester required to evaluate Forrester's proposed relaxation of credit standards.
3.Canvas Reproduction, inc., has spent $4,500 dollars researching a new project. The project required $20,000 worth of new machinery, ehich would cost $3,000 to install. The company would realize $4,500 in after-tax proceeds from the sales of old machinery. If Canvas's working capital is unaffected by this project, what is the initial investment amount for this project.
4. A few years ago, Large Industries implemented an inventory auditing system at an installed cost of $175,000. Since then, it has taken depreciation deductions totaling $124,250. What is the system's current book value? If large sold the system for $110,000, how much recaptured depreciation would result?
5. Bryson Sciences is planning to purchase a high-powered microscopy machine for $55,000 and incur an additional $7,500 in installation expenses. It is replacing similar microscopy equipment that can be sold to net $35,000, resulting in taxes from a gain on the sale of $11,250. Because of this transaction, current assets will increase by $6,000 and current liabilities will increase by $4,000. Calculate the initial investment in the high-powered microscopy machine.
6. Klein's tools is considering offering a cash discount to speed up the collection of accounts receivable. Currently the firm has an average collection period of 65 days, annual sales are 35,000 units, the per-unit price is $40 , and the per unit variable cost is $29. A 2% cash discount is being considered. Klein's tool estimates that 80% of its customers will take the 2% discount. If sales are excepted to 37,000 units per year and the firm has a 15% required rate of return, what minimum average collection period is requireed to approve the cash discount plan?
Submitted: 6 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 6 years ago.



Thank you for requesting me.



Please advise your deadline as well as the name of the book you are using: Title, author's name, and edition


Thank you

Customer: replied 6 years ago.
Principles of managerial Finance, thirteeth edition
Expert:  Manal Elkhoshkhany replied 6 years ago.

Good so we have time :)


One more question to make my job easier :)


Can you please list the question and chapter numbers?


Thank you

Customer: replied 6 years ago.
Chapter 15 Warm-up exercise1, 2, 6.
Chapter 11 Warm up Exercise 3,4, 5
Expert:  Manal Elkhoshkhany replied 6 years ago.

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Expert:  Manal Elkhoshkhany replied 6 years ago.
Thank you for the accept and for requesting me to answer your last post, but for future posts, please remember to type "For BusinessTutor" at the beginning of the post.