Unformatted text preview: The firm desires to maintain a minimum cash balance of $100. How much excess cash (or loans) will the firm have at the end of November? A. $100 B. $105 C. $110 D. $115 E. $120 5. A company believes that it will need to order 100,000 units of inventory over the coming year. The current price per unit of inventory is $3 per unit. Fixed ordering charges for inventory are $150 per order and carrying costs for inventory are equal to 10 percent of the average value (price) of the inventory carried. As you can calculate, the optimal order quantity is: YOU ARE GIVEN THE FOLLOWING INFORMATION FOR PROBLEMS 6 - 7: Income Statement Year 0 Year 1 Sales 12,600.00 13,320.00 Variable Costs -10,080.00 Gross Profit 2,520.00 Fixed Costs -1,108.00 Bad Debt Expense: Original -252.00-252.00 New ---EBIT 1,160.00 Interest: Original -200.00-200.00 New ---EBT 960.00...
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This note was uploaded on 07/13/2011 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.
- Spring '08