I. Working Capital Management (Session 1,2 & 3) (5 marks) Bagpipe companys days sales outstanding is 50 days (on a 365-day basis). The companys accounts receivable equal $100 million and its balance sheet shows inventory equal to $125 million. The companys payables deferral period (accounts payable divided by daily purchases) is 40 days. What is the length of the companys cash conversion cycle? II. Performance Evaluation Session 5,6,7,8 (10 marks) Outdoor Express is a large manufacturer of recreational equipment. Performance of the Camping division is measured as an investment center because the mangers make all the decisions about investments in operating equipment and space. Following is the financial information of the Camping Division: Average operating Assets $ 2,000,000 Current Liabilities: $500,000 Operating Income: $ 300,000 Required Rate of Return: 12% The companys weighted average cost of capital is 9% and Tax rate is 30% Required: a. Calculate return on investment for the Camping Division b. Calculate the Residual income for the Camping Division c. Calculate EVA for the Camping Division III. Transfer Pricing Session 5,6,7,8 (10 marks) 1. A company has two divisions The Assembly Division (AD) and Electrical Division (ED) For the Electrical Division (ED) at a normal volume of 250,000 batteries per year, production costs per battery are: Direct materials 400 Direct labor 200 Variable factory overhead 120 Fixed factory overhead 420 Total INR 1140 The Electrical Division has been selling 250,000 batteries per year to outside buyers for INR 1360 each. Production Capacity is 350,000 batteries/year. The Assembly Division (AD) requires batteries which it can either source from outside or from the Electrical Division (ED) Required: a) Given that the Electrical Division is operating below its full capacity at what minimum price should the batteries be transferred from ED to AD so that the company as a whole benefits b) The Assembly Division has been buying batteries from outside suppliers for INR 1300 each. The Assembly Division (AD) has offered to purchase 90,000 batteries from the Electrical Division (ED) for INR 1040 per unit. Given that the Electrical Division is operating below its full capacity should the Electrical Division manager accept the offer? Will an internal transfer be of any benefit to the company? c) What is the transfer price from the Electrical Division to the Assembly Division if the method used is 150% of variable costs? d) Using the transfer price calculated in part c calculate the operating income for Electrical Division if 90000 batteries are transferred to the Assembly Division. e) In case the Electrical Division is operating at its full capacity of 350,000 batteries/year and can sell all that it manufactures in the outside market what will be the best possible transfer price for the company as a whole? URGENTLY REQUIRE ANSWER BY 8pm today..please help