Bee Nay has projected sales of 200,000, gross profit rate of 40% and return on sales of 10%. Accounts Receivable is 15% of sales; inventory is 5% of cost of sales. Bee Nay has minimum cash balance of 5,000 and fixed assets of 65,000. What is the total assets requirement?

Bee Nay has projected sales of 200,000, gross profit rate of 40% and return on sales of 10%. Accounts Receivable is 15% of sales; inventory is 5% of cost of sales. Bee Nay has minimum cash balance of 5,000 and fixed assets of 65,000. What is the total assets requirement?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

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Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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