able Editing - 3 ...4.5 Problem Sal Sectronics Inc. The management Committee of SC Electronics Inc. was studying a report prepared by its economie department about the expansion of a plant to increase their production capacity. The CEO, Sim Smith, indicated that the expansion program would cost approximately 55.6M in Non-current assets property plant, and equipment and that he was hoping that at least half of the funds would be financed through internally generated cash. The investment would take place during the early part of 2013. He therefore asked his management team to prepare a summary report about how much cash they expected to generate within their respective operations during the remaining sex months of 2012. He wanted to review the plans in 30 days. At the meeting, limasked each team member to make a brief statement of how much cath he or she would be able to generate before the end of 2012. The vice-president of marketing said that despite the economic slowdown, the company would be able to increase its revenue 3.2% over 2011. She also added that the introduction of two new product lines and better after sale service would help the company increase its market share a little. She stated that the industry would grow by only 1.5%. She believed, based on her forecasts, the company would reach 102M invenue in 2012 The vice-president of production give a breakdown of the plant and equipment that would be included in the capital budget proposal. He emphasized that the modernization program would save money in manufacturing, which was induded in 41 return new goal for the year 2012 The chief financial officer said that the projected financial statements included 51.3M for depreciation amortization and that she had asked the manager of the trade receivables department to update her about the receivables that would be shown on the statement of financial position by the end of the year. She also mentioned that although there was a three day improvement in the werage collection period, receivable outstanding would how 5700,00 lei The vice-president of production indicated that all managers should be responsible for the production and manufacturing sectors of the company had looked at every possibility to improve the inventory turnover. Despite that the levels of inventories would increase $800.000 The treasurer was asked how much cash could be raised He replied 5400,000 could be raised from the bank to finance the increased levels of trade receivables and inventories and that he had approached several long-term lenders who were willing to finance the capital penditures project for $1.2M He also painted out that SC Electronics would continue to pay is common shareholders their annual dividends of 5600,000 but that he would be able to raise 500.000 from them by the common shares. The treasurer also noted that the cash te the bank would increase from $600,000 to 5792.000 by the end of 2012. He added that because of some changes in the accounting procedures, the current taxes payable increase by 5100,000 The manager of the trade and other payables department and that he had approached several Despite the increased amount of purchases suppliers about extending the time before paying their that the company would make before the end of the year she was able to extends trade and other payable by 5300000 able Editing - 3 ...4.5 Problem Sal Sectronics Inc. The management Committee of SC Electronics Inc. was studying a report prepared by its economie department about the expansion of a plant to increase their production capacity. The CEO, Sim Smith, indicated that the expansion program would cost approximately 55.6M in Non-current assets property plant, and equipment and that he was hoping that at least half of the funds would be financed through internally generated cash. The investment would take place during the early part of 2013. He therefore asked his management team to prepare a summary report about how much cash they expected to generate within their respective operations during the remaining sex months of 2012. He wanted to review the plans in 30 days. At the meeting, limasked each team member to make a brief statement of how much cath he or she would be able to generate before the end of 2012. The vice-president of marketing said that despite the economic slowdown, the company would be able to increase its revenue 3.2% over 2011. She also added that the introduction of two new product lines and better after sale service would help the company increase its market share a little. She stated that the industry would grow by only 1.5%. She believed, based on her forecasts, the company would reach 102M invenue in 2012 The vice-president of production give a breakdown of the plant and equipment that would be included in the capital budget proposal. He emphasized that the modernization program would save money in manufacturing, which was induded in 41 return new goal for the year 2012 The chief financial officer said that the projected financial statements included 51.3M for depreciation amortization and that she had asked the manager of the trade receivables department to update her about the receivables that would be shown on the statement of financial position by the end of the year. She also mentioned that although there was a three day improvement in the werage collection period, receivable outstanding would how 5700,00 lei The vice-president of production indicated that all managers should be responsible for the production and manufacturing sectors of the company had looked at every possibility to improve the inventory turnover. Despite that the levels of inventories would increase $800.000 The treasurer was asked how much cash could be raised He replied 5400,000 could be raised from the bank to finance the increased levels of trade receivables and inventories and that he had approached several long-term lenders who were willing to finance the capital penditures project for $1.2M He also painted out that SC Electronics would continue to pay is common shareholders their annual dividends of 5600,000 but that he would be able to raise 500.000 from them by the common shares. The treasurer also noted that the cash te the bank would increase from $600,000 to 5792.000 by the end of 2012. He added that because of some changes in the accounting procedures, the current taxes payable increase by 5100,000 The manager of the trade and other payables department and that he had approached several Despite the increased amount of purchases suppliers about extending the time before paying their that the company would make before the end of the year she was able to extends trade and other payable by 5300000