1- Explain the Cash Conversion Cycle (CCC).

2- PV calculation of short term cash flow,

A firm will make a $10,000,000 credit sale payable within 45 days with payment received on Day 45; it has a discount rate of 6%. What is the PV with this payment term?

3- AFNWC calculation,

A company makes the following forecast for 2018:

-Revenues increase by 10% from 2017 sales of $4,000,000;

-Receivables were $400,000 in 2017, it is usually about 10% of revenues;

-Inventory was at $600,000, and it historically equals to 15% of revenues;

-Payables are usually $200,000, and it is expected at 5% of revenues.

a)What will be the sales level for 2018?

b)What will be the inventory, receivable and payable increase for 2018, based on the sales forecast. ?

c)What will be the additional funds needed for working capital (AFNWC) ?