Class book: Fundamentals of Corporate Finance by Brealey, Myers, and Marcus Income versus Cash Flow. Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of the kits mext quarter at a price of $11, and the other 50 kits in the third quarter at a price of $12. It takes a full quarter for Ponzi to collect its bills from its customers. a. what is the net income for Ponzi next quarter? b. what are the cash flows for the company this quarter? c. what are the cash flows for the company in the third quarter? d. what is Ponzi's net working capital in the next quarter?
Class book: Fundamentals of Corporate Finance by Brealey, Myers, and Marcus Income versus Cash Flow. Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of the kits mext quarter at a price of $11, and the other 50 kits in the third quarter at a price of $12. It takes a full quarter for Ponzi to collect its bills from its customers. a. what is the net income for Ponzi next quarter? b. what are the cash flows for the company this quarter? c. what are the cash flows for the company in the third quarter? d. what is Ponzi's net working capital in the next quarter?
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
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Class book: Fundamentals of
Income versus Cash Flow. Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of the kits mext quarter at a price of $11, and the other 50 kits in the third quarter at a price of $12. It takes a full quarter for Ponzi to collect its bills from its customers.
a. what is the net income for Ponzi next quarter?
b. what are the cash flows for the company this quarter?
c. what are the cash flows for the company in the third quarter?
d. what is Ponzi's net working capital in the next quarter?
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