WMBA 6070: Managerial Finance

· Gross working capital refer to the total current assets of the firm. Net working capital of a firm is computed by taking the current asset less the current liabilities of the firm. Additionally, Net operating working capital is calculated by taking the current assets less current non-interest bearing liabilities of the firm. These three are essential in determining the amount and timing of the cash collections in the company.

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· If annual sales is $2, 578, 235 and all on credit, then the investment in accounts receivables is the same as sales = $2 578 235

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· In comparing the cash conversion cycle

My company is way better in cash conversion than the Competitors. My company taker less time during the year to make cash available.

· Strategies that the company can use

1. Reduce the amount of operating expenses in order to expand the profit margin.

2. Increase the amounts of retention of profits to have more funds available.

3. Reduce the amounts of liabilities every year.

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· The options available to the company is to convert the dollar into Japanese Yen, the convert the yen into the Shekels. It would be profitable. The strategy I would recommend is to use future contract on foreign exchange. A good calculation would result in to profits. Also, another strategy would be use options derivatives contract.