Analyse the expected cash flow profile of the company for the year 2006(E) and comment on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Analyse the expected cash flow profile of the company for the year 2006(E) and comment on any 3 of the following factors: 'self-financing of investments', 'funding of investments', 'cash position of the company and free cash flow (3 marks) As a part of the GetCeresTM program, Ceres Gardening Company started extending an increased credit period to its dealers. Look at the operating working capital of the company and analyse the impact of this decision on its operating working capital step by step through the following questions Question 2A: Calculate the operating working capital of Ceres Gardening Company for 2002- 2006 (E). (2 marks) Question 2B: Calculate the operating working capital/sales ratio of Ceres Gardening Company for 2002 to 2006 (E). (2 marks) Question 2C: Calculate the DIO, DSO and DPO for the company from 2002 to 2006(E). (2+2+2 marks) Question 2D: What is the implication of the long credit period given to dealers by Ceres Gardening Limited on its working capital? Explain your answer by specifying at least one reason (1 mark) Question 3 (3 marks) Prepare and present the economic balance sheet for Ceres Gardening Company and calculate the capital employed by the company. Question 4 (12 marks) Analyse the key profitability ratios and identify the reason for the change in them by answering the following questions. Analyse the expected cash flow profile of the company for the year 2006(E) and comment on any 3 of the following factors: 'self-financing of investments', 'funding of investments', 'cash position of the company and free cash flow (3 marks) As a part of the GetCeresTM program, Ceres Gardening Company started extending an increased credit period to its dealers. Look at the operating working capital of the company and analyse the impact of this decision on its operating working capital step by step through the following questions Question 2A: Calculate the operating working capital of Ceres Gardening Company for 2002- 2006 (E). (2 marks) Question 2B: Calculate the operating working capital/sales ratio of Ceres Gardening Company for 2002 to 2006 (E). (2 marks) Question 2C: Calculate the DIO, DSO and DPO for the company from 2002 to 2006(E). (2+2+2 marks) Question 2D: What is the implication of the long credit period given to dealers by Ceres Gardening Limited on its working capital? Explain your answer by specifying at least one reason (1 mark) Question 3 (3 marks) Prepare and present the economic balance sheet for Ceres Gardening Company and calculate the capital employed by the company. Question 4 (12 marks) Analyse the key profitability ratios and identify the reason for the change in them by answering the following questions.
Expert Answer:
Answer rating: 100% (QA)
Question 2A Calculate the operating working capital of Ceres Gardening Company for 2002 2006 E 2 marks Operating Working Capital Current Assets Current Liabilities 20022003 Current Assets 50000 Curren... View the full answer
Related Book For
Entrepreneurial Finance
ISBN: 978-1305968356
6th edition
Authors: J. Chris Leach, Ronald W. Melicher
Posted Date:
Students also viewed these accounting questions
-
The condensed financial statements of Soule Company for the years 2013 and 2014 are presented below. Compute the following ratios for 2014 and 2013. (a) Current ratio. (b) Inventory turnover....
-
The income statement of Jones Company for the year ended December 31, 2010, follows. Required a. Compute the net earnings remaining after removing nonrecurring items. b. Determine the earnings (loss)...
-
As the auditor of Haves Company for the year ended December 31, 2016, you found the following transactions occurred near its closing date: 1. Merchandise received on January 8, 2017, and costing $800...
-
A simple beam AB of span length L = 24ft is subjected to two wheel loads acting at distance = 5 ft apart (see figure). Each wheel transmits a load P = 3.0 k, and the carriage may occupy any position...
-
Explain how the existence of the euro may affect U.S. international trade.
-
What are some strategies to ensure that the target audience and message you create to promote a new Spanish talk show are informed by an accurate understanding of diverse audience cultures.
-
A nozzle is designed to accelerate the fluid from \(V_{1}\) to \(V_{2}\) in a linear fashion. That is, \(V=a x+b\), where \(a\) and \(b\) are constants. If the flow is constant with \(V_{1}=10...
-
You are requested to deliver your auditors report personally to the board of directors of Sebal Manufacturing Corporation and answer questions posed about the financial statements. While reading the...
-
How you and management at your organization could reduce the potential impact of a strike? Explain in details.
-
Jerry Stevenson is the manager of a medical clinic in Scottsdale, AZ. He wants to analyze patient data to identify high-risk patients for cardiovascular diseases. From medical literature, he learned...
-
Since Ryanair DAC's2 emergence as an upstart challenger to the Aer Lingus Ltd.-British Airways plc duopoly in the late 1980s, it had been both a consumer champion and antagonist; a technological...
-
What will be the annual cash rate of a credit of S/10,000 granted for 1 month (30 days) to the TEA of 51.99. additionally applying a monthly credit life insurance cost of 0.0515% on the principal...
-
Find the annual effective cost rate for a loan of S/1000.00 that charges a TEA of 40%, for one year. Also charged, at the time of disbursement, is a commission of 0.5% of the loan and 1.5% of the...
-
How the simultaneous (concurrent) change in supply and demand affects the ultimate change in equilibrium price (Pe) and quantity (Qe) of the medical equipment market in the country. (hints: Use the...
-
1. Consider a particle of mass m and mechanical energy & moving in the potential U (x) U cosh(x/a)' where u and a are positive constants. (b) Now consider the motion of a particle incident on the...
-
Use the continuous compound interest formula to find the indicated value. A=$81,000; P= $59,871; r = 9.3%; t = ?
-
It is commonly stated that nobody can beat the stock market. In other words, if the market has averaged X% return over the past five years, then extremely few of Wall Street's best can top that....
-
Activator rod AB exerts on crank BCD a force P directed along line AB. Knowing that P must have a 100-N component perpendicular to arm BC of the crank, determine (a) The magnitude of the force P, (b)...
-
What is securities crowdfunding?
-
A. An analysis of the cash conversion cycle should also help Kaj understand what has been happening to the operations of Scandi. Prepare an analysis of the average conversion periods for the three...
-
What is meant by the terms business crowd sourcing and crowdfunding?
-
A batch distillation facility has a bank of columns of Type 1 and another bank of Type 2. Type 1 columns are available for processing \(6,000 \mathrm{hr} /\) week, and Type 2 columns are available...
-
During the 2002 Winter Olympics in Salt Lake City, Utah, a local microbrewery received a rush order for 100 gallons of beer containing at least 4.0 volume \(\%\) alcohol. Although no \(4 \%\) beer...
-
Willy Wonka has engaged your consultation services to assist in the recipe formulation of a new brand of chocolate bar, weighing \(100 \mathrm{~g}\), which he plans to name "Super-choc." Each...
Study smarter with the SolutionInn App