Strayer Fin100 Lab Assignment 6: Chapters 13 and 14

JohnBoy Industries has a cash balance of $38,000, accounts payable of $118,000, inventory of $168,000, accounts receivable of $203,000, notes payable of $113,000, and accrued wages and taxes of $33,500.

How much net working capital does the firm need to fund?

Net working capital funding need

Sow Tire, Inc., has sales of $1,452,000 and cost of goods sold of $982,000. The firm had a beginning inventory of $97,200 and an ending inventory of $83,000.

What is the length of the days’ sales in inventory?(Use 365 days a year. Use ending inventory rather than average inventory. Round your answer to 2 decimal places.)

Days' sales in inventory

Compute the IRR static for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project E

Time:

0

1

2

3

4

5

Cash flow

–$3,200

$950

$930

$820

$600

$400

IRR

Should the project be accepted or rejected?

Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project M

Time:

0

1

2

3

4

5

Cash flow

–$1,600

$470

$600

$640

$720

$220

NPV

Should the project be accepted or rejected?