Name : ZENZEN ZENAL ARIFIN
Class : Executive
NPM : 120820200542
P15-3
Multiple changes in cash conversion cycle Antonio is an analyst at Barrilla Group. The firm turns
over its inventory 5 times each year. It has an average collection period of 50 days and an average
payment period of 20 days. The firm's annual sales are €12 million. Assume there is no difference
in the investment per euro of sales in inventory, receivables, and payables, and assume a 365-day
year.
Beberapa perubahan dalam siklus konversi tunai Antonio adalah seorang analis di Barrilla Group.
Perusahaan membalikkan persediaannya 5 kali setiap tahun. Ini memiliki periode pengumpulan
rata-rata 50 hari dan periode pembayaran rata-rata 20 hari. Penjualan tahunan perusahaan adalah
€ 12 juta. Asumsikan tidak ada perbedaan dalam investasi per euro dari penjualan dalam
persediaan, piutang, dan hutang, dan asumsikan satu tahun 365 hari.
Answer:
a) Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the
amount of resources needed to support its cash conversion cycle.
Average Age of inventories = 365 days
So, Inventory turnover ratio : 365 / 5 times = 73 Days
So, Operating Cycle : Average age of Inventories+ Average collection period
= 73 days + 50 days
=123 Days
So, Cash Conversion cycle = Operating Cycle – Average payment period
= 123 days – 20 days
=103 Days
So, Daily financing = (Annual sales / 365 days)
= (12,000,000 /365)
= 32,877
So,Total resources needed = (Annual sales / 365 days) * Cash Conversion Cycle
= (12,000,000 /365) * 103 Days
= € 3,386,301
a) Hitung siklus konversi kas perusahaan, pengeluaran operasional kas harian, dan jumlah
sumber daya yang dibutuhkan untuk mendukung siklus konversi kasnya.
Rata-rata Umur persediaan = 365 hari
Jadi, Rasio perputaran persediaan: 365/5 kali = 73 Hari
Jadi, Siklus Operasi: Usia rata-rata Persediaan + Periode pengumpulan
rata-rata
= 73 hari + 50 hari
= 123 Hari
Jadi, Siklus Konversi Tunai = Siklus Operasi - Periode pembayaran
rata-rata
= 123 hari - 20 hari
= 103 Hari
Jadi, Pembiayaan harian = (Penjualan tahunan / 365 hari)
= (12.000.000 / 365)
= 32.877
b) Find the firm's cash conversion cycle and resource investment requirement if it makes the
following changes simultaneously.
(1) Shortens the average age of inventory by 10 days.
(2) Speeds the collection of accounts receivable by an average of 15 days.
(3) Extends the average payment period by 5 days.
So, Operating Cycle = Average age of Inventories+ Average collection period
= (73-10) days + (50-15) days
= 98 Days
So, Cash Conversion cycle = Operating Cycle – Average payment period
= 98 days – (20+5) Days
= 73 Days
So, Daily financing = (Annual sales / 365 days)
= (12,000,000/365)
=32,8
So,Total resources needed = (Annual sales / 365 days) * Cash Conversion Cycle
= (12,000,000 /365) *73
= € 2,400,000
b) Temukan siklus konversi kas perusahaan dan kebutuhan investasi
sumber daya jika perusahaan membuat perubahan berikut secara
bersamaan.
(1) Mempersingkat usia rata-rata persediaan sebanyak 10 hari.
(2) Mempercepat pengumpulan piutang rata-rata 15 hari.
(3) Memperpanjang periode pembayaran rata-rata selama 5 hari.
Jadi, Siklus Operasi = Usia Rata-rata Persediaan + Periode
pengumpulan rata-rata
= (73-10) hari + (50-15) hari
= 98 Hari
Jadi, Siklus Konversi Tunai = Siklus Operasi - Periode pembayaran
rata-rata
= 98 hari - (20 + 5) Hari
= 73 Hari
Jadi, Pembiayaan harian = (Penjualan tahunan / 365 hari)
= (12.000.000 / 365)
= 32,8
Jadi, Total sumber daya yang dibutuhkan = (Penjualan tahunan / 365
hari) * Siklus Konversi Tunai
= (12.000.000 / 365) * 73
= € 2.400.000
c) If the firm pays 15% for its resource investment, by how much, if anything, could it
increase its annual profit as a result of changes in part b?
If the firm pays 15% WACC, it could reduce annual costs of working capital financing by
= (Daily expenditure * reduction in Conversion Cycle * Financing rate)
= (32.877 * 30 days * .15)
= $27,780.83
= € 147,945
c) Jika perusahaan membayar 15% untuk investasi sumber dayanya,
seberapa banyak, jika ada, dapat meningkatkan laba tahunannya sebagai akibat dari
perubahan pada bagian b?
Jika perusahaan membayar 15% WACC, itu dapat mengurangi biaya
tahunan pembiayaan modal kerja dengan
= (Pengeluaran harian * pengurangan Siklus Konversi * Tingkat
pembiayaan)
= (32.877 * 30 hari * .15)
= $ 27.780,83
= € 147.945
d) If the annual cost of achieving the profit in part c is €50,000, what action should Antonio
recommend to Barrilla? Why?
So, the firm should be approved to the proposal , By the fact that total cost is €50,000 and
the firm savings are €147.945, which results is profit
d) Jika biaya tahunan untuk mencapai keuntungan di bagian c adalah €
50.000, tindakan apa yang harus Antonio rekomendasikan kepada
Barrilla? Mengapa?
Jadi, perusahaan harus menyetujui proposal tersebut, Dengan fakta
bahwa total biaya adalah € 50.000 dan penghematan perusahaan
adalah € 147.945, yang hasilnya adalah keuntungan.
P15-3
Total funds requirement for the coming year as shown in the following table:
Month
January
February
March
April
May
June
July
August
September
October
November
December
In $
2,000,000
2,000,000
2,000,000
4,000,000
6,000,000
9,000,000
12,000,000
14,000,000
9,000,000
5,000,000
4,000,000
3,000,000
a) Divide the firms monthly funds requirements into (1) a permanent component and (2) a seasonal
component, and find the monthly average for each of those components.
b) Describe the amount of long-term and short-term financing used to meet the total funds
requirements under (1) an aggressive funding strategy and (2) a conservative funding strategy.
Assume that, under the aggressive strategy, long-term funds finance permanent needs and shortterm funds are used to finance seasonal needs.
c) Assuming that short-term funds cost 5% annually and that the cost of long-term funds is 10%
annually, use the averages found in part a to calculate the total cost of each strategies describes in
part b. Assume that the firms can earn 3% on any excess cash balances.
d) Discuss the profitability-risk tradeoffs associated with the aggressive strategy and those
associated with the conservative strategy.
Month
January
February
March
April
May
June
July
August
September
October
November
December
Total Funds Permanent
Requirements Requirements
$ 2,000,000 $ 2,000,000
$ 2,000,000 $ 2,000,000
$ 2,000,000 $ 2,000,000
$ 4,000,000 $ 2,000,000
$ 6,000,000 $ 2,000,000
$ 9,000,000 $ 2,000,000
$ 12,000,000 $ 2,000,000
$ 14,000,000 $ 2,000,000
$ 9,000,000 $ 2,000,000
$ 5,000,000 $ 2,000,000
$ 4,000,000 $ 2,000,000
$ 3,000,000 $ 2,000,000
Total
Seasonal
Requirements
$
$
$
$ 2,000,000
$ 4,000,000
$ 7,000,000
$ 10,000,000
$ 12,000,000
$ 7,000,000
$ 3,000,000
$ 2,000,000
$ 1,000,000
$ 48,000,000
Answer
a) For Seasonal requirement = Total Fund Requirement-Permanent Fund Requirement
The average permanent requirement = $2.000.000
The sum of seasonal requirement = $48.000.000
Average Seasonal requirement ($48.000.000 / 12) =$4,000,000
b) With aggressive funding strategy, The firm can loan $2,000,000 for permanent portion with
standar interest rate. The firm can take the loan from $ 1,000,000 to $12,000,000 according
to the table month above with short term interest rate.
But, with conservative funding, the firm can take the maximum loan $ 14,000,000 with long
term interest rate standart.
c) Aggressive Funding Strategy : ($ 2,000,000 x 0.1) + ($ 4,000,000 x 0.05) = $ 400,000
Conservative Funding Strategy :
$ 14,000,000 x 0.1 = $ 1,400,000 – ( 14.000.000-2.000.000-4.000.000) x 3%
= $ 14.000.000 – 240.000
= $ 1.160.000
d) The difference in financing cost makes aggressive and more attractive is aggressive
strategy itself. Conservatife strategies requires to the company should pay interest on a total
amount of funds maximum $ 14,000,000. Which is not always needed each month by
resulting in higher costs. So, aggressive strategies is more profitable but also riskier.
Untuk Kebutuhan Musiman = Total Kebutuhan Dana-Kebutuhan Dana Permanen
Persyaratan permanen rata-rata = $ 2.000.000
Jumlah kebutuhan musiman = $ 48.000.000
Persyaratan Musiman Rata-rata ($ 48.000.000 / 12) = $ 4.000.000
a) Dengan strategi pendanaan yang agresif, Perusahaan dapat meminjamkan $ 2.000.000
untuk porsi permanen dengan suku bunga standar. Perusahaan dapat mengambil pinjaman
dari $ 1.000.000 hingga $ 12.000.000 menurut tabel bulan di atas dengan suku bunga
jangka pendek.
Tetapi, dengan pendanaan konservatif, perusahaan dapat mengambil pinjaman maksimum
$ 14.000.000 dengan standar suku bunga jangka panjang.
b) Strategi Pendanaan Agresif: ($ 2.000.000 x 0,1) + ($ 4.000.000 x 0,05) = $ 400.000
Strategi Pendanaan Konservatif: $ 14.000.000 x 0,1 = $ 1.400.000
c) Perbedaan biaya pembiayaan yang membuat agresif dan yang lebih menarik adalah
strategi agresif itu sendiri. Strategi konservatif mensyaratkan perusahaan harus membayar
bunga atas jumlah dana maksimum $ 14.000.000. Yang tidak selalu dibutuhkan setiap
bulan dengan menghasilkan biaya yang lebih tinggi. Jadi, strategi agresif lebih
menguntungkan tetapi juga lebih berisiko.