Question (6)Post Company's 20Y1 net sales were $10,000,000, cash cost of goods sold was $5,500,000, and inventory days on hand was 62 days. The company projects its 20Y2 net sales will be$11,000,000, cash cost of goods sold will be $6,100,000, and inventory days on hand will be 57 days. What would be the cash flow impact of the five-day shortening of inventory dayson hand?OA decrease of $75,342.O An increase of $75,342.OA decrease of $83,562.O An increase of $83,562.

Inventory days on hand is a measure of how long a company holds its inventory before selling it. A…

Answered: Question (6) Post Company's 20Y1 net…

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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Using Table 6–13, what is required in new financing if next year’s salesforecast increases to $400,000, profit margin is 10 percent, and the payoutratio is 90 percent?
The Thakor Corporation's purchases from suppliers in a quarter are equal to 65 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $95 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 04 Sales $2,370 $2,670 $2,370 $2,070 Sales for the first quarter of the following year are projected at $2,700. Calculate the company's cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Q4
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2 You currently have a cash balance of $140,000, receivables of $220,000 and payables of $90,000. Average days in receivables is 30 and average days in payables is 42. You typically order 50% of next quarter's predicted sales in raw materials which is your variable cost. Salaries and other related costs typically amount to 20% of your current period sales. Last year's sales were as detailed below by quarter. You expect an increase of 5% year on year on last year's sales. Q1 400,000 02 410,000 Q3 430,000 Create a cashflow prediction by quarter for the next four quarters. Q4 400,000
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1. An Investment has expected sales of 40.000 unit with the selling price of $20 each unit. The Variable cost are 65% of sales and fixed cost are $100.000. The Investment would required fixed assets cost s100,000 with useful life 4 years. Assuming a tax rate of 25% percent. What is the projected net income? 2. An investment (new project) has annual cash inflow of $4,000, $5,600, $7,800, and $8,500. For the next 4 years, the discount rate is 9%. What is the discounted payback period for these cash flows if the initial cost is S12,000? What if the initial cost is $16,000? 3. Puma is one of the best sportswear brands in the world. To produce shoes, the variable material cost is S35 per unit and variable labor cost is $4 per unit. a. What is the variable cost per unit? b. Suppose that Puma Fixed cost of $77,000 during a year in which total production of 9,500 units. What are the total costs for the year? c. If the selling price is $85 per unit, what is Puma quantity break-even on cash…
Question (6) Post Company's 20Y1 net sales were $10,000,000, cash cost of goods sold was $5,500,000, and inventory days on hand was 62 days. The company projects its 20Y2 net sales will be $11,000,000, cash cost of goods sold will be $6,100,000, and inventory days on hand will be 57 days. What would be the cash flow impact of the five-day shortening of inventory days on hand? OA decrease of $75,342. O An increase of $75,342. OA decrease of $83,562. O An increase of $83,562.
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3) A shoe retailer plans, for the period, net sales of $3,000,000 with a 20% profit and 25% operating expenses. The anticipated markdowns are 15%, along with sales discounts at 2% and shortages of 3%. Cash discounts to be earned are estimated at 5%, and alterations are 1% of net sales. What initial markup % is needed for this retailer's merchandise to achieve the desired profit goal?
Red Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .96 percent per month. Current Policy New Policy Price per unit $ 1,100 $ 1,100 Cost per unit $ 910 $ 910 Unit sales per month 1,160 1,260 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Typing only. ..

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