The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 60percent of the next quarter's forecast sales. The payables period is 60 days. Wages,taxes, and other expenses are 25 percent of sales and interest and dividends are $95per quarter. No capital expenditures are planned.Here are the projected quarterly sales:Q1az03Q4Sales $1,860 $2,160 $1,860 $1,560Sales for the first quarter of the following year are projected at $2,190. Calculate thecompany's cash outleys by completing the following: (Do not round intermediatecalculations and round your answers to 2 decimal places, e.g., 32.16.)Payment of accountsWages, taxes, other expensesLong-term financing expenses (interest and dividends)Q1Q2Q3Q4

Q4 Last year Q1Q2Q3Q4Q1 Next yearSales18602160186015602190Purchases (60% of…

Answered: Sales for the first quarter of the…

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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The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $830 $860 $940 $970 a. Accounts receivable at the beginning of the year are $420. The company has a 45- day collection period. Calculate cash collections in each of the four quarters by completing the following (A negative answer should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.): Q1 Q2 Beginning receivables $ 420.00 Sales 830.00 Cash collections Ending receivables 860.00 Q3 940.00 Q4 970.00
Suppose that Ken-Z Art Gallery has annual sales of $870,000, cost of goods sold of $560,000, average inventories of $244,500, average accounts receivable of $265,000, and an average accounts payable balance of $79,000. Assuming that all of Ken-Z's sales are on credit, what will be the firm's cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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Wontaby Ltd. is extending its credit terms from 45 to 60 days. Sales are expected to increase from $4.75 million to $5.85 million as a result. Wontaby finances short - term assets at the bank at a cost of 12 percent annually. Calculate the additional annual financing cost of this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Enter answer in whole dollar not in million.) Annual financing costN
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The appropriate discount rate for the following cash flows is an 8 percent APR compounded quarterly. Year Cash Flow 1 2 3 $930 1,010 0 1,600 What is the present value of the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present value
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Sales for the first quarter of the following year are projected at $2.190. Calculate the company's cash outleys by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.. 32.16.)