1. The Wholes Foods Market, Inc. balance sheet for the fiscal year ending September 29, 2013 included the following: Total current assets of $1,980 million total assets of $5,538 million, Total Current liabilities of $1,088 million and total liabilities of $1,660 million. What was the company's net working Capital on September 29, 2013. What does this tell us?
2. Last yea Perpetual Plastics Company took an average of 46 days to pay suppliers and 38 days to collect its receivables. The company average days' sales in inventory was 52 days. What was Perpetual's operating cycle and cash conversion cycle last year?
3. Montrose, Inc. sells its products with terms of 3/15 EOM net 30. What is the cost of the trade credit it provides its customers?
4. FRA Manufacturing Company purchase 9,000 units of Part 3BX each year. The cost of placing an order is $5 and the cost of carrying one art in inventory for a year is $1. What is the economic order quantity (EOQ) for p[art 3BX if the company carries a safety stock of 200 units? How many orders will the company need to place each year?
5. Rosemary Corporation had daily sale of $139,000. The financial manager at the firm has determined that a lockbox would reduce collection time 2.2 days. Assuming the company can earn 5.5 percent interest per year, what are the potential annual savings from the lockbox.
6. Sunny Way Landscaping has a formal line of credit of $500,000 with First Commerce Bank, The interest rate on the loan is 6 percent, and under the agreement Sunny Skies must pay an annual fee of 75 basis points on the unused amount. The mount currently outstanding on the loan is $325,000. What is the annual fee the company must pay on the current unused balance? What is the effective interest rate?