The Thakor Corporation's purchases from suppliers in a quarter are equal to 65 percentof 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 perquarter. No capital expenditures are planned.Projected quarterly sales are:Q1Q2Q304Sales $2,370 $2,670 $2,370 $2,070Sales for the first quarter of the following year are projected at $2,700. Calculate thecompany's cash outlays 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)TotalQ1Q2Q3Q4

Cash outlay refers to the actual payment or expenditure of cash by an individual or a business for a…

Answered: The Thakor Corporation's purchases from…

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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11-A company had 30 million in total sales last year and expects 40 million in total sales this year. Ten percent of each year’s sales are on credit that will he paid the following year. The company anticipates the following expenses for this year: Depreciation of 5 million Labor materials taxes and other expenses of 51 million Assume the company begins this year with a zero cash balance. At the end of this year, the company will have a cash deficit of: A. 8 million B. 12 million C. 15 million D. 17 million
Calculating Payments Marshall plc's purchases from suppliers in a quarter are equal to 75 per cent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes and other expenses are 20 per cent of sales, and interest and dividends are £60 per quarter. No capital expenditures are planned. Here are the projected quarterly sales: Sales (£) Q1 750 Q2 920 Q3 Q4 890 790 Sales for the first quarter of the following year are projected at £970. Calculate the com- pany's cash outlays by completing the following: Payment of accounts Wages, taxes, other expenses Long-term financing expenses. (interest and dividends) Total Q1 Q2 Q3 Q4
For the year ending December 31, 2017, sales for Company Y were $62.91 billion. Beginning January 1, 2018 Company Y plans to invest 8.5% of their sales amount each year and they expect their sales to increase by 5% each year over the next three years. Company Y invests into an account earning an APR of 2.0% compounded continuously. Assume a continuous income stream How much money will be in the investment account on December 31, 2020? Round your answer to three decimal places. 17.306 x billion dollars How much money did Company Y invest in the account between January 1, 2018 and December 31, 20207 Round your answer to three decimal places. 16.858 x billion dollars How much interest did Company Y earn on this investment between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer 447 x billion dollars
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(Financial forecasting percent of sales) Tulley Appliances, Inc. projects next year's sales to be $19.9 million. Current sales are at $15.3 million, based on current assets of $5.1 million and fixed assets of $4.9 million. The firm's net profit margin is 5.3 percent after taxes. Tulley forecasts that current assets will rise in direct proportion to the increase in sales, but fixed assets will increase by only $110,000. Currently, Tulley has $1.6 million in accounts payable (which vary directly with sales), $1.9 million in long-term debt (due in 10 years), and common equity (including $3.8 million in retained earnings) totaling $6.3 million. Tulley plans to pay $501,000 in common stock dividends next year. a. What are Tulley's total financing needs (that is, total assets) for the coming year? b. Given the firm's projections and dividend payment plans, what are its discretionary financing needs? c. Based on your projections, and assuming that the $110,000 expansion in fixed assets will…
A company roll out its capital budget for the coming year at P20,000,000. The optimal capital structure is 40% debt and 60% equity. Earnings before taxes and interest is P34.667 million. The company follows the residual dividend policy and maintains the same capital structure. The company has P200,000,000 assets. The average interest rate on outstanding debt is 10% and tax rate is 40%. How much is the total interest payment? Electric Co. recently completed a reverse split where 1,000,000 shares becomes 500,000 shares. Prior to the reverse split the stock price is P75. What is the price of each stock after the transaction?
Calculate the external financing needed given the following financial statements. Assume that all costs, all assets, and accounts payable change proportionally with sales. Sales are projected to grow by 25%. Also assume that the company is operating at full capacity. Current Statement of Comprehensive Income Sales $50,000 CoGS 30,000 EBDIT 20,000 Depreciation 10,000 EBIT 10,000 Interest expense 5,000 Taxable income 5,000 Taxes (35%) 1,750 Net Income 3,250 Dividends 975 Addition to RE 2,275 Current Statement of Financial Position Cash $8,000 Accounts receivable 22,000 Inventory 30,000 Total current assets 60,000 Fixed assets 90,000 Total assets $150,000 Accounts payable $15,000 Notes payable 5,000 Total current liabilities 20,000 Long-term debt 40,000 Common stock 40,000 Retained earnings 50,000 Total owners’ equity 90,000 Total Liabilities and OE $150,000 Select one answer A- $33,750 B- $34,656.25 C- $30,906.25 D- $37,500 E- $22,500
Sexton Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $ 930 $ 1,010 $ 970 $ 1,070 Sales in the year following this one are projected to be 10 percent greater in each quarter. a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g ., 32.16.) c. Calculate payments to suppliers assuming a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)
Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $170 $185 $200 $225 Sales for the first quarter of the year after this one are projected at $180 million. Accounts receivable at the beginning of the year were $71 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are $14 million per quarter. Wildcat plans a major capital outlay in the second quarter of $85 million. Finally, the company started the year with a $54 million cash balance and wishes to maintain a $30 million minimum balance. Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 3 percent per quarter and can Invest any excess funds in short-term marketable securities at a rate of 2 percent per…
Distribution Limited projects sales next year to be $4 million and expects to earn 5% of that amount after taxes. The company is currently in the process of projecting its financial needs and has made the following assumptions (projections): - Current Assets will equal 8% of sales, and fixed assets will remain at their current level of $1million. - Common equity is currently $0.6million (made up entirely of Retained earnings), and the company pays out half of its after-tax earnings in dividends. - The company has short-term payables that normally equal 7% of sales each and it has no long-term debt outstanding. What are the company’s financing needs for the coming year?
XYZ sdn bhd estimating its cash requirement for the third quarter year 2011. The company's projected sales are as follows: month sales (rm) march 170,000 april 160,000 may 140,000 june 180,000 july 200,000 august 220,000 september 195,000 october 180,000 i) cash sales are 10% of the current month's sales, while 90% of them were sold on credit. 60% of the month's credit sales are paid in the month following the sale, while 30% of it are paid in the second month following the sales. another 10% is bad debt. ii) purchases are 50% of sales and were made one month before sales. iii) payments on accounts are on 30% of current month's purchases plus 70% of the previous month's purchases. iv) wages and salaries amounting to 10% of the preceeding month's sales. v) an 8% semi-annually interest payment on rm 100,000 notes payable is to the paid in July 2011. vi) the company plans to pay rm 6,500 in cash for a brand-new computer in august. vii) a quarterly dividend of rm 10,000 will be paid to ABC…
The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 70 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $90 per quarter. No capital expenditures are planned. Projected quarterly sales are: 01 02 Sales $ 2,340 $ 2,640 Sales for the first quarter of the following year are projected at $2,670. Calculate the company's cash outlays by completing the following: Note: 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 04 $ 2,040 Q1 Q2 Q3 Q4

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