XYZ Company sells books to universities. The company policy is to sell 60% cash and the rest in a form of accounts receivables to be collected after 3 months, the cost should be paid 65% cash and the rest in a form of accountspayables to be paid after 1 months. Assuming that the company sales increase by 9% monthly and its COGS increases by 7% monthly. The required is to a. Fill the table. b. What does it mean to have negative cash flow while thecompany is making profits? c. Provide recommendations to XYZ company. \table[[Month, Jan., Feb., March, April, May], [Sales, $125,000,,,,], [COGS, $110,000,,,,], [Cash inflow,...], [Cash Outflow,...], [\table [[Accounting Net], [Profit/Loss]],.,,,], [NCF,,,,, ]] 1. XYZ Company sells books to universities. The company policy is to sell 60% cash and therest in a form of accounts receivables to be collected after 3 months, the cost should bepaid 65% cash and the rest in a form of accounts payables to be paid after 1 months.Assuming that the company sales increase by 9% monthly and its COGS increases by 7%monthly. The required is toFill the table.MonthSalesCOGSCash inflowCash Outflowa.b.What does it mean to have negative cash flow while the company ismaking profits?c. Provide recommendations to XYZ company.March AprilAccounting NetProfit/LossNCFJan.$125,000$ 110,000Feb.May

The difference between a company's total revenue and total costs over a given period is known as…

1. XYZ Company sells books to universities. The company policy is to sell 60% cash and the rest in a form of accounts receivables to be collected after 3 months, the cost should be paid 65% cash and the rest in a form of accounts payables to be paid after 1 months. Assuming that the company sales increase by 9% monthly and its COGS increases by 7% monthly. The required is to Fill the table. What does it mean to have negative cash flow while the company is making profits? c. Provide recommendations to XYZ company. April Month Sales COGS Cash inflow Cash Outflow a. b. Accounting Net Profit/Loss NCF Jan. $125,000 $ 110,000 Feb. March May

1. XYZ Company sells books to universities. The company policy is to sell 60% cash and the rest in a form of accounts receivables to be collected after 3 months, the cost should be paid 65% cash and the rest in a form of accounts payables to be paid after 1 months. Assuming that the company sales increase by 9% monthly and its COGS increases by 7% monthly. The required is to Fill the table. What does it mean to have negative cash flow while the company is making profits? c. Provide recommendations to XYZ company. April Month Sales COGS Cash inflow Cash Outflow a. b. Accounting Net Profit/Loss NCF Jan. $125,000 $ 110,000 Feb. March May

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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