I have five separate questions that I need help with please, thank you!

question 1

\f(Related to Checkpoint 18.2) (Calculating the operating and cash conversion cycle) Carraway Seed Company Inc. has for many years cultivated and sold what are known as heritage plants and seeds. For example. the company has sought out older varieties of tomato plants that are no lenger grown by commercial vegetable farmers since they either take too long to mature, do not ship well, or do not held up for long on the store shelf. The company has recently been considering ways to reduce its investment in working capital in order to make itself more profitable. At present the firm has an inventory conversion period of 83 days and the majority of its customers take advantage of its credit terms of 22 days. The company purchases its inventory items on credit terms that allow them 51 days to pay but has always followed a policy of making cash payments for invoices as soon as they are received, so the accounts payable deferral period is typically only 11 days. a. What are Carraway's operating and cash conversion cycles? b. If Carraway were to decide to take full advantage of its credit terms and delay payment until the last possible date, how would this impact their cash conversion cycle? c. What would be your recommendation to the company with regard to its working capital management practices and why? a. Carraway's operating cycle is days. (Round to the nearest whole number.) (Related to Checkpoint 18.2) (Estimating the cost of bank credit) Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a short-term bank loan. The loan will carry a rate of 13 percent per annum with interest paid in advance (discounted). In addition, Paymaster must maintain a minimum demand deposit with the bank of 7 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow $100,000 for a period of 3 months, what is the annualized cost of the bank loan? The annualized cost of the bank loan is D%. (Round to two decimal places.) (Related to Checkpoint 18.2) (Calculating the cost of trade credit) Calculate the annualized cost of the trade credit terms of 4/10, net 30 when payment is made on the net due date (assume a 365-day year). T} The annualized cost of the trade credit terms of 4110, net 30 is :l%_ (Round to two decimal places.) (Related to Checkpoint 18.1) (Measuring firm liquidity) The following table contains current asset and current liability balances for Deere and Company (DE): T B a. Measure the liquidity of Deere & Co. for each year using the company's net working capital and current ratio. b. Is the trend in Deere's liquidity improving over this period? a. The company's net working capital for 2011 is | |. (Enter your answer in thousands of dollars.) (Related to Checkpoint 18.2) (Calculating the cost of short-term financing) The R. Morin Construction Company needs to borrow $120,000 to help finance the cost of a new $180,000 hydraulic crane used in the firm's commercial construction business. The crane will pay for itself in one year, and the firm is considering the following alternatives for financing its purchase: Alternative A. The firm's bank has agreed to lend the $120,000 at a rate of 13 percent. Interest would be discounted, and a 16 percent compensating balance would be required. However, the compensating-balance requirement is not binding on the firm because it normally maintains a minimum demand deposit (checking account) balance of $30,000 in the bank. Alternative B. The equipment dealer has agreed to finance the equipment with a 1-year loan. The $120,000 loan requires payment of principal and interest totaling $140,148. a. Which altemnative should Morin select? b. If the bank's compensating-balance requirement had necessitated idle demand deposits equal to 16 percent of the loan, what effect would this have had on the cost of the bank loan alternative? a. The cost of Alternative A would be D%. (Round to two decimal places.)