FINANCIAL MANAGEMENT hw Essay Example | Topics and Well Written Essays - 750 words

FINANCIAL MANAGEMENT hw - Essay Example invested in this cash conversion cycle, which assumes a 365-day year and are as follows. Inventory = ($10,000,000 *.075 * (60/365) = $1,232,877 + Accounts receivable = (10,000,000 * (40/365) = 1,095,890 -Accounts payable = (10,000,000 * 0.75 *0.65) *35/365 = 467,466 $1,861,301 =Resources Invested Changes in any of the times period will change the resources tied up in operations. If MAX could reduce the average collection period on its accounts receivable by 5 days, it would shorten the cash conversion timeline and thus reduce the amount of resources MAX has invested in operations. For MAX, a 5-day reduction in the average collection period would reduce the number of resources invested in the cash conversion cycle by $136,986 [$10,000,000 *5/365]. This answer is appropriate because the cash conversion cycle is a basis for discussing how the firm funds its required investment in operating assets. First, differentiate between permanent and seasonal funding needs and describe aggressive and conservative seasonal funding strategies (Gitman, 2009). 17. Mad Money CNBC Jim Cramer always believes that there is a bull market somewhere. Jim Cramer wants to help his audience find it. Inside the mind of Jim Cramer, is a report from one of the most successful traders on Wall Street. His goal is to help the watching audience make money on Wall Street. Cramer's Internet site is here to provide Internet users with updates throughout the day of Jim Cramer's Stock Picks. The site provides recaps CNBC's Mad Money. Jim Cramer also sells collectibles on his site. The mad money store has several items of interest to his viewers are sold, for example the talking Jim Cramer bobble head character. If a viewer misses, an episode he tapes them every week and the video will appear on the website, Under Jim Cramer Video collection. Jim Cramer this week visited with his viewers about the deal with T-Mobile and ATT. He referred to this as a good stock buy for this week but warned viewers to w atch the trends on the combined companies. He highlighted the problems revolving around the Middle Eastern crisis. Cramer suggested how to eject them out of power. and how having the United States in the involvement of war with Kaddafi is fueling higher prices, therefore putting a barrel of oil out of everyone's reach. The economy depends on the Middle East oil until the United States authorizes use of the United States own reserves. Japans nuclear crisis is slowly stabilizing, and the country must at the present time focus on repairing the damage wrought by the devastating earthquake. Cramer mentioned the continued barrage of bad news is endlessly bad, therefore making investors fearful. Continued pessimistic approaches to the news are keeping stock prices lower. Although gold and silver, continue to climb. The show will attract more investors, which are trying to day trade or are simply trying investing on their own for the first time. The present economy serving only the rich