Posted: March 18th, 2023

Use of financial devices to increase returns

Amazon’s cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers?

There are several reasons which explain why the Amazon Company has a shorter cash cycle than its competitor Barnes & Noble. First and foremost, Amazon is a much bigger company than Barnes & Noble both in terms of income and in the number of products that it sells. While Barnes & Noble sells some things besides book and ebooks, this is their primary product. Amazon sells everything including books, although this is a very small portion of their income. Another reason for this is that Amazon is doing better financially than Barnes & Noble. The ebook trend has bitten into Barnes & Noble’s income, which they tried to combat by creating their own ereader, the Nook but this was far less successful than the Amazon ereader, Kindle and then Kindle Fire. Unlike Amazon which is highly diversified, Barnes & Noble is dependent on book sales which have continued to decline. Other retailers might look at this scenario and decide to lessen their interests in the sale of print books and to diversify their product so as not to be dependent on any one department.

Don't use plagiarized sources. Get Your Custom Essay on
Use of financial devices to increase returns
Just from $13/Page
Order Essay

2. How does Boeing achieve a cash cycle of 100 days?

Given that Boeing, in this scenario, had an inventory of 61 days and a receivables period of 45 days, this explains why its operating cycle is considered 106 days. It had a payables period of 183 days and a cash cycle of negative 77 days. Analyzing these numbers, it is clear that the cash cycle is determined by comparing the days in the operating cycle with the days in the payables period. So, if there were a difference of 100, this would give Boeing a cash cycle of 100 days.

3. Define the following terms as they apply to our work in FIN 201 in ten words or less:

Capital structure: the way a corporation finances its assets

Working capital: capital of a business used in day-to-day operations

Assets: thing that derives value because of contractual claim

Liabilities: financial obligation to pay money, goods, or services

Retained earnings: portion of income retained by the corporation instead of distributed

Liquidity: liquid assets; cash

Leverage: use of financial devices to increase return on investment

Sarbanes-Oxley: Public Company Accounting Reform and Investor Protection Act

GAAP: generally accepted accounting principles

Market value vs. book value: book value is price paid, market value is current price it could be sold for Depreciation: reduction in the value of an asset over time

Straight-line vs. accelerated depreciation: straight-line: equally over time, accelerated: more loss in present

Solvency: ability to meet obligations

Profitability: quality of affording gain, benefit, or profit

Pv: present value

Fv: future value

PVA: present value of an annuity

FVA: future value of an annuity

Simple interest: interest paid on principal alone

Compound interest: interest calculated on both principal and accrued interest

Discount rate: minimum interest rate set by Federal Reserve for lending

Rule of 72: divide the compound return into 72 to determine years needed to double money

Annuity: fixed sum of money paid to someone each year

Required return formula: required rate of return on investment

NPV: net present value

NPV decision rule: must be based on cash flow/value

Payback: period of time in which a debt or obligation can be repaid

IRR: internal rate of return

Formula for cost of equity: dividends per share divided by current market value of stock

Formula for cost of debt: before-tax-cost-of-debt times (1 – tax-rate)

WACC: weighted average cost of capital

Credit facility: any credit source extended to a government, business or group

Venture capital: capital invested in a project where there is risk

Operating cycle: business cycle from startup to the profit

Inventory period: time scheduled between replenishing orders

Accounts receivable period: time between sale of inventory and collection of money

Cash cycle: time between cash disbursement and cash collection

Profit margin: amount by which revenue from sales exceeds costs

ROE: return on equity

Debt/equity ratio: financial ratio indicating proportion of shareholders’ equity and debt

4. You expect to earn 8% per year on your investment. If you invest $3,000 today, how much will your investment be worth in 9 years?

72/8 = 9 years to double

It will be worth $6,000.

5. You want to have $40,000 available to finance a trip around the world in 12 years. You estimate that you can earn 12% on your investment. How much do you need to deposit today to meet your goal?

72/12 = 6 years to double to $20,000


6. A new Grady White fishing boat costs $5,000 in 1979. Today, the very same boat costs around $40,000. Estimate the average annual inflation rate, using the Rule of 72.



7×100= 700% / 34 = 20.588%

7. You invest $2,000 today and expect to earn 9% per year. How many years will it take for your investment to grow to $32,000?

72/9 = 8 years to double to $4,000

16 years to = $8,000

24 years = $16,000

32 years

Works Cited

Ross, S., Westerfield, R. & Jordan, B. (2012). Fundamentals of Corporate Finance. 10th ed.


Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.