Over a five year period, starting in 2005, Lincare has reduced their ratio from 40.6 to 39.6. Gentiva Health Services remained nearly the same with a ratio of 57.1 in 2000 down to 56.9 in 2009. From an efficiency standpoint, Lincare is converting their receivables into cash faster than its competitor. In addition, Lincare has outperformed their cash conversion rate from 2008 to 2009. Lincare’s conversion rate went from 14 days to 17.5 days which means Lincare’s cash flow generation improves year after
Old press – Originally purchased 3 years ago at an installed cost of $400,000, it is being depreciated under MACRS using a 5-year recovery period. The old press has a remaining economic life of 5 years. It can be sold today to net $420,000 before taxes; if it is retained, it can be sold to net $150,000 before taxes at the end of 5 years. Press A – This highly automated press can be purchased for $830,000 and will require $40,000 in installation costs. It will be depreciated under MACRS using a 5-year recovery period.
Similarly the seventh row of results shows that for a five-year holding period and a “middle level” of risk aversion, the optimal allocation is 40.2% in the risk-free, 41.4% in T-Bonds, 3.2% in World Bonds, 9.0% in Large Stocks and 6.3% in Small Stocks. This portfolio’s expected return is 4.71% and its standard deviation is 2.38%. As the target date approaches the allocation shifts from the higher risk asset classes to the lower risk asset classes to a majority in the risk-free asset. 3. Look at the results in Table 1.
Inventory per the books is $483,172. Your inventory turnover is one times per year and the industry standard is 1.5 times per year. Per our conversations over the year I have suggested that you should evaluate the inventory and those items that still have in inventory for more that 24 months should be either at a very little profit or at least at your cost. The sale of these items can then either reinvest into items that will turnover or to reduce debt. The accounts payable at the Fiscal Year End increased by almost 200%.
1.0 points) Assuming the same rate, annually the less often it compounds the less interest being paid overall if different interest rates though that changes things. 2. In your Section_5 folder, navigate to and open the Example_Credit_Report, and then answer the questions below. a. What is the total balance of Jessie Robinson's real estate account?
Therefore, CUTCO must consider strategic options that will lead to substantial growth. Limitation of Retail Expansion CUTCO’s current annual revenue is $260 million, which means it needs to generate an additional $740 million in annual revenues to reach its long-term goal. Each store, based on estimates from the pilot stores, is capable of achieving revenues up to $300,000. As CUTCO increases its prices by 5% every two years, its revenue would grow to $380,000. In order for CUTCO to make up the difference of $740 million in missing revenue, it would need to open 2,000 stores in the U.S. With an initial expenditure of $150,000 per store, this venture would cost the company $300 million.
Explain the Federal Reserve’s current view about inflation Near-term inflation expectations as studied from the University of Michigan Surveys of Consumers in October continued to be well below the elevated levels seen in the spring, and now the expectations longer term inflation within the survey remained stable. Overall Inflation was expected to remain at certain levels consistent with or below rate as predicted earlier by the committee’s dual mandate. Below are the latest projections of the Federal Reserve Governors and reserve Bank presidents from the November 2011 meeting: |Table 1. Economic projections of Federal Reserve Governors and Reserve Bank presidents, January 2009 | |Percent
Product #1 is expected to earn no profit in the first year, $500 in the second year and $1,000 in the third year. Product #2 is expected to earn $500 per year for three years. Assume your cost of capital is 10%. Which product should you make? Present Value of #1 = $0 +
________________________________________ 2 The following information pertains to the Norfolk Company's three products: Product B's production is increased to 700 units per year but B's selling price on all units of B is reduced to $8.00. Assuming everything else remains the same as the original data, annual profits will: a. decrease by $400. b. increase by $700. c. decrease by $1,800. d. increase by $1,400.
The manufacturing sector (1), which has been producing a core product line for 25 years, is experiencing a steady decline in profits of 10% a year over the past 5 years. The technology sector (2), which has been in operation for approximately 3 years, utilizes leading edge technology resulting in healthy profits. It is the intention of this organization to phase out the manufacturing sector over the next 5 years; making the technology sector (2)