A company is launching a new sales initiative and expects sales of $598,427 during the first year. To prepare forthis, they plan to acquire 35 days worth of inventory. If their gross profit margin is 29%, how much inventory mustthey acquire as part of their initial investment?Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. Forexample, if your answer is $90.1234, enter 90.1234Type your answer...

Gross profit margin is the measuring metrics that investors or company managers will use to evaluate…

Answered: A company is launching a new sales…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose you own a business and you expect to generate a profit of $50,000 next year. Each year after that you expect your profit to grow by 4%. If you earn profits for 10 years total and the discount rate is 8%, what is your company’s valuation today (present value)? (Show layout in Excel Please)
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Based on the provided information in the attached image, please calculate the following simpe equations; (It's super simple, just tiny simple mathematical calculations that should take only 2 minutes, I'm just lost with the wording...) Average collection period, = Days to sell inventory, = Accounts payable payment period, = Amborse's cash-to-cash cycle, = The company's bank loan =
Assume you are thinking about starting a business and would like to forecast your cash needs for the next six months. You expect sales to be approximately $30,000 per month for the first 12 months and your purchases to support sales will be approximately 60% of sales. You anticipate about 20% of your sales will be cash and 80% collected the following month. Your supplier has agreed to extend credit for 70 days at no cost (i.e. you will pay your bills on a two month lag). Your monthly expenses for rent, wages, utilities, and so forth will be approximately $3,500 per month. You have deposited $15,000 in a checking account to begin your operations and would like to maintain a minimum balance of $5,000 in that account. 1. Explain the purpose of creating budgets and how your budget will help the business remain capitalized 2 . Will you need additional funds at some point? Justify your answer. 3. How would you raise capital in the future?
Your company is expected to earn (as a cash flow) $3 million next year, $3.06 million the following year, $31212 the year after that, and it will continue to grow by 2% per year indefinitely. Using a discount rate of 8%, what is the value of the сompany? (Do not round intermediate calculations. Report your result in millions of dollars. Round the final answers to 2 decimal places. Omit $ sign and the word "million" in your response. For example, if your answer is $1,234,567 just write 1.23)
Suppose that Ken-Z Art Gallery has annual sales of $870,000, cost of goods sold of $560,000, average inventories of $244,500, average accounts receivable of $265,000, and an average accounts payable balance of $79,000. Assuming that all of Ken-Z's sales are on credit, what will be the firm's cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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Database Systems is considering expansion into a new product line. Assets to support expansion will cost $ 500,000. It is estimated that Database can generate $ 1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets ( investment) be for the year? (Round your return on assets to 1 decimal place. Omit the "$" and "%" signs in your response.)
Your company received a $9 million order on the last day of the year. You filled the order with $3 million worth of inventory. The customer picks up the order the same day and pays $3 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $6 million within 40 days. Suppose your firm’s tax rate is 0% (ignore taxes). Based on the above information; a.Your earnings went up by $9 million b.No option is correct c. Your earnings did not change d.Your earnings went up by $6 million
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Please see image to solve question.
Assume the following:• A company is importing and selling Mercedes cars.• An Islamic bank invests US$7 million for an 70% profit share.• An investor invests US$3 million for a 30% profit share.• The investor is to be paid a 15% management fee as percentage of profit after expenses. Assume: Sale proceeds = US$12, 400, 000Expenses = US$200, 000 Requirement:Calculate total return to the bank and total return to the investor.

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