2 You currently have a cash balance of $140,000, receivables of $220,000 and payables of $90,000. Average days in receivables is 30 and average days in payables is 42. You typically order 50% of next quarter's predicted sales in raw materials which is your variable cost. Salaries and other related costs typically amount to 20% of your current period sales. Last year's sales were as detailed below by quarter. You expect an increase of 5% year on year on last year's sales. Q1 400,000 Q2 410,000 Q3 430,000 Create a cashflow prediction by quarter for the next four quarters. Q4 400,000
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- Your firm sells widgets for $10 each. You make a gross profit of $3 on each widget. You have $300,000 of operating costs. Your company is exactly at break-even. What is the dollar amount of your cost of goods sold? Your firm has a gross profit of 15%. Your firm has operating costs of $75,000 per month. How much monthly revenue do you need to break-even?A factory costs $290,000. You forecast that it will produce cash inflows of $85,000 in year 1, $145,000 in year 2, and $230,000 in year 3. The discount rate is 10%.Suppose that there is a customer expected to annually generate $1,500 of gross contribution. With 10% of annual discount factor, the NPV of the expected profits for the next THREE YEARS from this customer is about A) $4,500 B) $4,103 C) $5,462 D) $3,730
- On the average, a company has a work-in-process lead time of 10 weeks and annualcost of goods sold of $30 million. Assuming that the company works 50 weeks a year:a. What is the dollar value of the work-in-process?b. If the work-in-process could be reduced to 5 weeks and the annual cost of carryinginventory was 20% of the WIP inventory value, what would be the annual savings?Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units. If it costs $5 every time an order is placed for more units and the storage cost is $4 per unit per year, a. What quantity should be ordered each time? b. What is the total ordering cost for a year? c. What is the total storage cost for a year?A factory costs $300,000. You forecast that it will product cash inflows of $105,000 in year 1, $165,000 in year 2 and $270,000 in year 3. The discount rat is 11%. what is the value of factory? Is the factory a good investment/
- Jasmine Inc. makes a single product that it sells for $25 each. Variable costs are $13 per unit and annual fixed costs total $30,000 per year. The company would like to realize operating income next year of $60,000. What level of sales in dollars must the company achieve to reach its target profit?5.An account executive receives a base salary plus a commission. On $30,000 in monthly sales, an account executive would receive compensation of $3100. On $50,000 in monthly sales, an account executive would receive compensation of $4300. Determine a linear function that yields the compensation y of a sales executive for a given amount of monthly sales x(. )? Use this model to determine the compensation of an account executive who has $85,000 in monthly sales. $ ? 6.A manufacturer of graphing calculators has determined that 8,000 calculators per week will be sold at a price of $85 per calculator. At a price of $80, it is estimated that 12,000 calculators will be sold. Determine a linear function that predicts the number of calculators that will be sold per week at a price of x dollars.y = Use this model to predict the number of calculators that will be sold at a price of $75.(. )?calculatorsIn evaluating a proposal to extend credit, new customers will generate an average of $11000 per day in new sales. On average, he will pay in 30 days. The variable cost ratio (COGS) is 25% of sales, administration expenses are 3% of sales, and the discount rate interest in the MKT is 0.06 What is the NPV of one day's sales
- What is the EOQ for a firm that sells 5,800 units when the cost of placing an order is $5.20 and the carrying costs are $4.00 per unit? Round your answer to the nearest whole number. units How long will the EOQ last? Use the rounded value from the previous question. Assume 365 days in a year. Round your answer to the nearest whole number. days How many orders are placed annually? Assume 365 days in a year. Use the rounded value from the previous question. Round your answer to the nearest whole number. orders per year As a result of lower interest rates, the financial manager determines the carrying costs are now $2.2 per unit. What is the new EOQ? Round your answer to the nearest whole number. units What is the annual number of orders? Assume 365 days in a year. Use the rounded values of the new EOQ and duration of the new EOQ in your calculations. Round your answer to the nearest whole number. orders per year122) A company sells two products-J and K. The sales mix is expected to be $3 of sales of Product K for every $1 of sales of Product J. Product J has a contribution margin ratio of 40% whereas Product K has a contribution margin ratio of 50%. Annual fixed expenses are expected to be $120,000. The overall break-even point for the company in dollar sales is expected to be closest to: A) $196,000 B) $200,000 C) $252,632 D) S263,420A manufacturer of ovens sells them for $1,370.00 each. The variable costs are $1,020.00 per unit. The manufacturer's factory has annual fixed costs of $2,460,000.00. Given the expected sales volume of 3,700 units for this year, what will be this year's net income? Round to two decimal places