Assume sales volume for the company is expected to shrink 7.65% while their average price per unit is expected to rise 2.05% and all companies in the industry will experience an inflation rate of 6.33% on cost of goods sold. If cost of goods sold for the company was originally 46.64% of sales, what percent of sales will it become as a result of these factors? (Enter your answer a number with two decimal places but without the percent symbol. For example, if your answer is 89.12%, enter 89.12) Type your answer...

Assume sales volume for the company is expected to shrink 7.65% while their average price per unit is expected to rise 2.05% and all companies in the industry will experience an inflation rate of 6.33% on cost of goods sold. If cost of goods sold for the company was originally 46.64% of sales, what percent of sales will it become as a result of these factors? (Enter your answer a number with two decimal places but without the percent symbol. For example, if your answer is 89.12%, enter 89.12) Type your answer...

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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In this exercise, we develop a model for the growth rate G, in thousands of dollars per year, in sales of a product as a function of the sales level s, in thousands of dollars.† The model assumes that there is a limit to the total amount of sales that can be attained. In this situation, we use the term unattained sales for the difference between this limit and the current sales level. For example, if we expect sales to grow to 4 thousand dollars in the long run, then 4 − s gives the unattained sales. The model states that the growth rate G is proportional to the product of the sales level s and the unattained sales. Assume that the constant of proportionality is 0.8 and that the sales grow to 2 thousand dollars in the long run. (a) Find a formula for unattained sales.(b) Write an equation that shows the proportionality relation for G.G =
Jim's Espresso expects sales to grow by 10.4% next year. Using the following statements LOADING... and the percent of sales method, forecast: a. Costs b. Depreciation c. Net Income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment (Note: Make sure to round all intermediate calculations to at least five decimal places.) The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Sales $207,620Costs Except Depreciation (100,360)EBITDA $107,260Depreciation (6,050)EBIT $101,210Interest Expense (net) (500)Pretax Income $100,710Income Tax (35,249)Net Income $65,461 Balance Sheet Assets Cash and Equivalents $14,990Accounts Receivable 1,980Inventories…
Until recently, Augean Cleaning Products sold its products on terms of net 70, with an average collection period of 85 days. In an attempt to induce customers to pay more promptly, it has changed its terms to 1/10, EOM, net 70. Assume current sales of $100, costs of $90, an interest rate of 12%, and no defaults. Assume each month has 30 days and a year has 360 days. The initial effect of the changed terms is as follows: Percent of Sales with Cash Discount 70 Average Collection Periods (Days) Cash Discount 40a Net present value Net 90 Some customers deduct the cash discount even though they pay after the specified date. a. Calculate the NPV per $100 of sales based on the original terms. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
27) You are pleased to see that you have been given a 4.48% raise this year. However, you read on the Wall Street Journal Web site that inflation over the past year has been 2.38%. How much better off are you in terms of real purchasing power? (Note: Be careful not to round any intermediate steps less than six decimal places.) Your real purchasing power is ____% (Round to two decimal places.)
The average seling price of a new vehicle in the United States last year was $64, 470. If the average price ten years earlier was $54, 700, what was the annual increase/decrease in the selling price over this time period?
Which of the following statements is TRUE? When EBIT and total assets both increase by 25%, the basic earnings power will also increase O a. An increase in the quick ratio over time means that the company's liquidity position is improving. O b. approximately by 25%. A lower than the industry's average inventory turnover ratio means that the company turns over or sells O C. and replaces its inventory more times per year. A higher than industry average P/E ratio indicates the company's stock must be overvalued. d.
"On average, a firm sells $2,500,000 in merchandise a month. Its cost of goods sold equals 80 percent of sales, and it keeps inventory equal to one-half of its monthly cost of goods on hand at all times. If the firm analyzes its accounts using a 360-day year, what is the firm's inventory conversion period?" Group of answer choices a. 360 days b. 180 days c. 30 days d. 15 days e. 10 days
Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 20X2?
Suppose a firm has had the following historic sales figures. Year: 2016 Sales $1,420,000 2017 $1,720,000 Next year's sales 2018 2019 2020 $1,600,000 $2,010,000 $1,770,000 What would be the forecast for next year's sales using FORECAST.ETS to estimate a trend? Note: Round your answer to the nearest whole dollar. 27

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