College of Administrative and Financial Sciences Assignm

College of Administrative and Financial Sciences Assignment 2 Course Name: Corporate Finance Student’s Name: Course Code: Fin201 Student’s ID Number: Semester: 2 CRN: Academic Year: 1441 H For Instructor’s Use only Instructor’s Name: Students’ Grade:Marks Obtained/5 Level of Marks: High/Middle/Low Question 1: a. Would you expect Alothaim Market, which sells food, or Panda Market, which sells a wide range of household goods at attractive prices, to have the higher cash conversion cycle? Why? b. Use the following data to calculate the cash conversion cycle of each firm (all values are in millions of dollars). What factor has the greatest impact on the difference in their conversion cycles? Alothaim Market Panda Market Sales 4,890 20,000 Cost of good sold 2.600 8000 Inventories 3,400 2000 Accounts receivable 250 670 Account payable 350 1000 Question 2: Recall that in2018 Executive Fruit ended the year with $1,000,000 of fixed assets and net working capital, and it had $3,000,000 of sales. In other words, each dollar of sales required $.70 of net assets. The company forecasts that sales in 2019 will increase by $300,000. Therefore, if the ratio of net assets to sales remains constant, assets in 2019 will need to rise by $.70 of this increase can be financed by reinvested earnings, which in 2019 are $40,000. So the amount of external financing needed is Question 3: What are some of the motivations for leveraged and management buyouts of the firm? &&Points to keep in mind:This assignment must be submitted on Blackboard (WORD format only) via the allocated folder.Email submission will not be accepted.You are advised to make your work clear and well-presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.Assignment will be evaluated through the BB Safe Assign tool.Late submission will result in ZERO marks being awarded.The work should be your own, copying from students or other resources will result in ZERO marks.Use Times New Roman font 12 for all your answers.