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Balance Sheet 2007 2008 2009 2010 2011 Cash / Equivlants 75 75 90 100 100 Accounts Receivable 300 400 600 550 500 Inventory 150 250
Balance Sheet | ||||||
2007 | 2008 | 2009 | 2010 | 2011 | ||
Cash / Equivlants | 75 | 75 | 90 | 100 | 100 | |
Accounts Receivable | 300 | 400 | 600 | 550 | 500 | |
Inventory | 150 | 250 | 350 | 250 | 250 | |
Net Fixed Assets | 525 | 575 | 610 | 540 | 465 | |
Total Assets | 1050 | 1300 | 1650 | 1440 | 1315 | |
Accounts Payable | 125 | 175 | 250 | 225 | 200 | |
Notes Payable | 165 | 162 | 178 | 136 | 99 | |
Accured operating Exp. | 60 | 161 | 165 | 89 | 76 | |
Long term-debr | 500 | 400 | 300 | 100 | 50 | |
stockholders equity | 200 | 402 | 757.2 | 890.2 | 890.2 | |
total liabilties
| 1050 | 1300 | 1650 | 1440 | 1315 |
Income Statement | 2007 | 2008 | 2009 | 2010 | 2011 |
Revenue | 1500 | 2250 | 3000 | 2000 | 1500 |
Cost of Good sold | 600 | 900 | 1200 | 800 | 600 |
Operating Expenses | 600 | 797 | 895 | 750 | 725 |
Depreciation | 35 | 50 | 65 | 70 | 75 |
Interest | 30 | 33 | 28 | 25 | 10 |
Taxes | 94 | 188 | 325 | 142 | 36 |
NET PROFIT | 141 | 282 | 487.2 | 213 | 54 |
Dividends | 40 | 80 | 132 | 80 | 54 |
Suppose that the treasurer of J. Washam targets a cash burn rate of 250 days for the firm in the year 2012.
a) Assuming that COGS are expected to remain unchanged from 2011, then what change (increase or decrease) in cash would be warranted?
B) Assuming that cash holdings will remain unchanged from 2011, then what change (increase or decrease) in COGS would be warranted.
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