Assume Collins also needs to increase its level of inventory to support new sales and that inventory turnover is four times.…
inventory would have been $7,000,000 and its ending inventory would have been $5,500,000. Assume ATW…
Chiller Company has credit sales of $5.60 million for year 2010. Chiller estimates that 1.32% of the credit sales will not be collected. Historically, 4% of outstanding accounts receivable is uncollectible. On December 31, 2010, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $3561. Chiller prepares a schedule of its December 31, 2010, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here:…
5. Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days's sales in inventory?…
The Unit 2 Individual project states that I am to determine the year-to-year percentage annual growth in total net sales for the Micro Chip Computer Corporation. After looking at the chart I do not think that the Micro Computer Corporation is going to make the +10% annual revenue growth in 2009. I got this by taking each year and adding them together and then dividing them to get the year-to-year growth. After doing this I took all of the percentages and averaged them out. This is showing that there is a -3.1% drop. Also using the CAGR there is a -6.8% which is not helping the company show that it will make the revenue growth. With this it will be very hard for the company to actually make a +10% revenue growth in 2009. Below is showing the loss and gains that were made every year.…
(Note: You can use tables or a financial calculator. If you use a calculator, please provide the inputs you used to solve the problems.) (5 points each = total 20 points)…
(Hint: You have to consider both the change in Accounts Payable and the change in Inventory.)…
Collins Office Supplies is considering a more liberal credit policy to increase sales, but expects that 9 percent of the new accounts will be uncollectible. Collection costs are 5 percent of new sales, production and selling costs are 78 percent, and accounts receivable turnover is five times. Assume income taxes of 30 percent and an increase in sales of $80,000. No other asset buildup will be required to service the new accounts.…
Project Statement Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Sales | | 950,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | Direct Cost55% of sales(Sales * 55% = DC) | | 522,500 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | Indirect Incremental Costs | | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 |…
• The investments given in the case (Table A) fail to include estimates of cash and accounts receivable. Table F provides an estimate of the percentage of total assets needed at 16.3% $1,589,000 / (1-.163) = $1,898,447…
• Subtract inventory from the sales forecast and that is how much you should produce…
Refers to the type of market where everyone receives the same time of information and prices are reflected based on this information.…
Based on the preceding information, what amount will be reported as investment in Silver Corporation stock in the consolidated balance sheet immediately following the acquisition?…
c. Based on the receivables turnover for 2010, estimate the investment in receivables if net sales were $1, 300,000 in 2011.…
I have been asked to produce a report for management of Matteck plc in which I will evaluate the financial viability of the investment proposal. The company is considering expanding into Asia. This operation would involve the acquisition of a factory, a purchase of several new motor vehicles and a new distribution unit. The following are the estimated costs of the planned investment:…