Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $ 1,000 Balance Sheet: Assets Cash $ 200 Short-term investments $ 105 Accounts receivable $ 100 Inventories $ 300 Total current assets $ 705 Net fixed assets $ 400 Total assets $ 1,105 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $ 1,000 Balance Sheet: Assets Cash $ 200 Short-term investments $ 105 Accounts receivable $ 100 Inventories $ 300 Total current assets $ 705 Net fixed assets $ 400 Total assets $ 1,105 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
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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Berman & Jaccor Corporation's current sales and partial balance sheet are shown below.
| This year | ||||
| Sales | $ | 1,000 | ||
| Balance Sheet: Assets | ||||
| Cash | $ | 200 | ||
| Short-term investments | $ | 105 | ||
| Accounts receivable | $ | 100 | ||
| Inventories | $ | 300 | ||
| Total current assets | $ | 705 | ||
| Net fixed assets | $ | 400 | ||
| Total assets | $ | 1,105 |
Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
Expert Solution
Step 1
Operating assets are those assets which are required and used for basic operations of the business. Sales means amount of revenue earned over the period.
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