Question.4405 - Ch. 19 Written AssignmentDetailsResolve the following problems (1, 2, 5, 8 and 9 from the book chapter). Show the calculations.1 . Intelligent Cookies Inc. (ICI) sold $30,000,000 of product in a year that had a cost of goods sold of $10,000,000. The average inventory carried by ICI was $500,000. On average, it takes 35 days for ICI’s customers, such as grocery stores and restaurants, to pay on their accounts. ICI buys ingredients, including flour, spices, and eggs, from its vendors on credit, and ICI takes about 40 days to pay its suppliers. How many days is ICI’s cash conversion cycle?2 . Shown below are account balances for Electra Engines Inc., a manufacturer. The accounts are shown in a random order. What is the amount of net working capital?5 . What is the estimated annual percentage rate (APR) of not taking advantage of the early payment discount based on these terms: 4/15, n/45?8 . The financial manager of New England Blissful Dairies, a distributor of milk, cream, and ice cream products, has finished the 12-month operating budget. For the month of June, the following projections were made:June 1 Cash Balance $90,000Cash Receipts $300,000Cash Disbursement $350,000Taking into account an amount of cash that the firm likes to maintain as a target (minimum cash balance) of $75,000, prepare the cash budget for June using the format below. Assume that, if necessary, the company will draw upon a preestablished line of credit with their bank to be able to maintain the target cash balance.Will the company need short-term financing?9 . The sales for Re-Works Inc., a company that fabricates iron fencing from recycled metals, are all on account. For the first three months of the year, Re-Works management expects the following sales:Based on past collection patterns, management expects the following:Also, based on past experience, management forecasts that 5 percent of accounts receivable will be uncollectible and will eventually be written off.What are the expected cash receipts for March?
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