ITW Industries sells on terms of 3/10, net 60. Gross sales l…
ITW Industries sells on terms of 3/10, net 60. Gross sales last year were $4,927,500 and accounts receivable averaged $573,750. Half of ITW’s customers paid on the 10th day and took discounts. What is the nominal cost of trade credit to ITW’s nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places. Do not enter $ or % in your answer. If your answer is 6.32%, for example, enter 6.32.
Read DetailsFisher Body and Fender, Inc. has an inventory conversion per…
Fisher Body and Fender, Inc. has an inventory conversion period of 73 days, an average collection period of 47 days, and a payables deferral period of 30 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. How many times per year does Fisher turn over its inventory? Round your answer to two decimal places.
Read DetailsDiamond El Paso has fixed operating costs of $350,000 and va…
Diamond El Paso has fixed operating costs of $350,000 and variable costs of $35 per unit. If it sells the product for $70 per unit, what is the break-even quantity? Round your answer to the nearest whole number. Do not include $ or % in your answer.
Read DetailsBB Technology raised $85 million in new debt and used this t…
BB Technology raised $85 million in new debt and used this to buy back stock. After the recap, BB’s stock price is $8.50. If BB had 90 million shares of stock before the recap, how many shares does it have after the recap? Enter your answer in millions. For example, an answer of $10 million should be entered as 10, not 10,000,000. Round your answer to the nearest whole number. Do not include $ or % in your answer.
Read DetailsVoltaire Products had $2.4 million in sales revenues in the…
Voltaire Products had $2.4 million in sales revenues in the most recent year and expects sales growth to be 25% this year. Voltaire would like to determine the effect of various current assets policies on its financial performance. Voltaire has $1 million of fixed assets and intends to keep its debt ratio at its historical level of 35%. Voltaire’s debt interest rate is currently 8%. With a restricted current asset policy, where current assets are 45% of projected sales, what is the expected return on equity (ROE)? Earnings before interest and taxes are expected to be 12% of sales. Tax rate is 25%. Do not round intermediate calculations. Round your answers to two decimal places. Do not enter $ or % in your answer.
Read DetailsThe optical flow constraint equation, Ixu + Iyv + It=0, is u…
The optical flow constraint equation, Ixu + Iyv + It=0, is under-constrained. It has 2P unknowns and P equations in an image with P pixels. Which of the following best describes the solution to this problem by Lucas and Kanade (1981)?
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