A treasury manager is assessing the performance of the company’s short-term investment portfolio which includes the following investments:  Security          Amount ($)                 Yield (%)           AA                      150,000                       4.3                    BB                      200,000                         5.2 CC                      50,000                           1.2 Find the overall return of the portfolio.

Which of the following statements regarding credit lines is incorrect?

A treasury manager is assessing the performance of the company’s short-term investment portfolio which includes the following investments:  Security          Amount ($)                 Yield (%)           AA                      150,000                       4.3                    BB                      200,000                         5.2 CC                      50,000                           1.2 Find the overall return of the portfolio.

Which of the following would most likely decrease the payables level?

(8 points) Problem 2 MUST SHOW YOUR WORK A seller is considering extending trade credit to an existing customer who buys on cash terms. The customer has just placed a sales order (cash terms) for immediate delivery of 300 units at a sales price per unit of $12. The customer states that they will increase their sales order by 20% if they receive a 90-day credit period. Variable costs are $3 per unit and involve an immediate cash outflow. If the seller has an annual opportunity cost rate of 12%, what is the NPV of extending credit to the customer?

Show Your Work Sunny Industries had sales of $1080 million and a cost of goods sold of $660 million in 202X. A simplified balance sheet for the firm appears below:   Sunny Industries Balance Sheet As of December 31, 202X (millions of dollars)   Assets     Liabilities and Equity   Cash 25   Accounts payable 60 Accounts receivable 85   Notes payable 425 Inventory 90   Accruals 45 Total current assets 200   Total current liabilities 530 Net plant, property, and equipment 6100   Long term debt 2725 Total assets 6300   Total liabilities 3255       Common equity 3045       Total liabilities and equity 6300   a.  Calculate Sunny’s Days Inventory Held   b. Calculate Sunny’s Days Sales Outstanding   c. Calculate Sunny’s Days Payable Outstanding   d. Calculate Sunny’s cash conversion cycle

(8 points) Problem 5 MUST SHOW YOUR WORK For this question fill in the blank and comment on the trend in these values.     Year 2023 Year 2024       Cash & Equivalents   9.8 13.7 Accounts Receivable   9.4 11.0 Inventories 49.4 48.4 Prepaid Expenses    0.5   1.0       Accounts Payable  15.0 10.0 Accrued Liabilities 4.3  5.8 Short-term Debt 5.9  7.9 Accruals 0.5  0.6 Current Ratio     Quick Ratio     NWC     WCR      

Which of the following would decrease a firm’s cash conversion cycle?

The difference between a firm’s operating cycle and its cash cycle is

Which of the following calculates the probability of a firm having liquidity problems?