A Blue Ocean Co. has the following balance sheet: Cash P 5,000 Accounts receivable 3,000 Inventories 7,000 Fixed assets 45,000 Accounts payable 5,000 Notes payable 10,000 Long-term debt 15,000 Common stock 25,000 Retained earnings 5,000 The company is not operating at full capacity. The sales for the current year is P100,000 and it is expected to increase by P5,000 per year for the next 4 years. The profit margin and the plowback ratio is forecasted to be constant at 5% and 30%, respectively. How much is total sales for the entire projected 4-years?
A Blue Ocean Co. has the following
Cash P 5,000
Inventories 7,000
Fixed assets 45,000
Accounts payable 5,000
Notes payable 10,000
Long-term debt 15,000
Common stock 25,000
The company is not operating at full capacity. The sales for the current year is P100,000 and it is expected to increase by P5,000 per year for the next 4 years. The profit margin and the plowback ratio is
How much is total sales for the entire projected 4-years?
Using Problem 7, what is the capital intensity ratio to be used for the AFN formula?
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