Soenen Inc

question 9

Short Answer

Soenen Inc. had the following data for 2013 (in millions). The new CFO believes that the company could improve its working capital management sufficiently to bring its net working capital and cash conversion cycle up to the benchmark companies' level without affecting either sales or the costs of goods sold. Soenen finances its net working capital with a bank loan at an 8% annual interest rate, and it uses a 365-day year. If these changes had been made, by how much would the firm's pre-tax income have increased?
B) $2,092
C) $2,301
D) $2,531
E) $2,784

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Definitions:

Method Definition

The part of a program that specifies the operations that can be performed on or by an object, and the actions taken when the method is invoked.

ListSize

The total number of elements that a list can contain at any given point in time.

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An array data structure that can hold multiple values, specifically of the double data type, which is used for storing double precision floating point numbers.