16.

6
a.
b.
c.

Days Sale Outstanding DSO=

38
Average amount of receivables= $
156,164.38
New Days Sales Outstanding DSO=
34.5
New Average amount of receivables= $
141,780.82
If all nondiscount customers paid on the 45th days, avarage receivables decrease to $141,780.82
16.7

a.
b.
c.
d.
e.

73.74%
14.90%
32.25%
21.28%
29.80%
16.8

a.
b.

Nominal cost on the 20th day non free trade credit

Nominal cost on the 15th day non free trade credit
It receive more credit than it would if it paid within 15 days

45.15%
37.63%

16.9

DSO=
DOS non discount=
Nominal cost=
Effective cost=

35
60
14.90%
15.89%

16.10

Nominal cost=
Effective cost=

14.11%
14.91%

16.11
a.
b.
c.

Cash conversion cycle=

Account Receivable= $
Turn over its inventory=

60
420,000
7.3

Cash conversion cycle=

Total assets turnover=
ROA=
Cash conversion cycle=
Total assets turnover=
ROA=

57
2.71
18.96%
37
2.95
20.68%

6-month forward exchange rate=

0.00958

16.12
a.
b.
c.

17.2
17.3

the spot exchange rate between the ero and the dollar = $1 US = 1.1 Euro and 1 Euro = $0.9

17.5 1 US dollar can buy tomorrow =

1.52 Francs

17.6 Cross rate between francs and pounds=

1 Francs = 0.4167 Pound

1 Pound = 2.4 Francs

17.7 The yield on 90 day risk free in the US =

17.8 The price for headphones in Mexico =

1.15%
117

days
days
decrease to $141,780.82

1.02038356

days
days

7.3

4.5625

days
times

days

days

.1 Euro and 1 Euro = $0.9091 US

= 0.4167 Pound
= 2.4 Francs

pesos