Can you help me with question AA 7 45 Thank you Required 1 Calculate the inventory turnover and number of days sales in inventory for the two companies 2 Interpretive Question Are the resules of these ratios what you expected Which com pany is managing its inventory more efficiently Analytical Assignments Preparing New Forecasts This spreadshoet assignment is a continuation of the spreadsheet assignments given in earlier chap ters If you completed those spreadsheets, you have a head start on this one If needed, review the spreadsheet assignment for Chapter 4 to refresh your memory on how to construct forecasted financial statements AA 7 45 Cumulative Spreadsheet Project I Handyman wishes to prepare a forecasted balance sheet and income statement for 2013 Use the original financial statement numbers for 2012 given in part (1) of the Cumula tive Spreadsheet Project assignment in Chapter 2) as the basis for the forecast, along with the following additional information a Sales in 2013 are expected to increase by 40 over 2012 sales of $700 b Cash will increase at the same rate as sales c The forecasted amount of accounts receivable in 2013 is determined using the fore casted value for the average collection period For simplicity, do the computations using the end of period accounes receivable balance instead of the average balance The average collection period for 2013 is expected to be 14 08 days d In 2013, Handyman expects to acquaire new property, plant, and equipment costing $80 The $160 in operating expenses reported in 2012 breaks down as follows $5 depre ciation expense, $155 other operating expenses f No new long term debe will be acquired in 2013 No cash dividends will be paid in 2013 h New short term loans payable will be acquired in an amount sufficient to make Handyman's current ratio in 2013 exactly equal to 2 0 e Note These statements were constructed as part of the spreadsheet assignment in Chapter 6 You can use that spreadsheet as a starting poine if you have completed that assignment Clearly state any additional ammprions thar yew make For this excrcise, add the following additional assumptions i The forecasted amount of inventory in 2013 is determined using the forecasted value for the number of days' sales in inventory (computed using the end of period inventory balance) The number of days' sales in inventory for 2013 is expected to be 107 6 days The forecasted amount of accounts payable in 2013 is determinod using the forecast ed value for the number of days purchases in accounts payable (computed using the end of period accounts payable balance) The number of days' purchases in accounts payable for 2013 is expected to be 48 34 days Repeat (1), with the following changes in assumptions Number of days' sales in inventory is expected to be 66 2 days b Number of days' sales in inventory is expected to be 150 0 days 3 Comment on the differcences in the forecasted values of cash from operating activities in 2013 under each tory 107 6 days, 66 2 days, and 150 0 days 4 2 a the following assumptions about the number of days' sales in inven Is there any impact on the forecasted level of accounts payable when the number of days sales in inventory is changed Why or why not 5 What happens to the forecasted level of short term loans payable when the number of days' sales in inventory is reduced to 66 2 days Explain 318 Part 2 Operating Actvibes Analytical Assignments Creating a Forecasted Balance Sheet and Income Statement This spreadsheet assignment is a continuation of the spreadsheet assignments given in earlier chap ters If you completed those spreadsheets, you have a head start on this one If needed, review the spreadsheet assignment for Chapter 4 to refresh your memory on how to construct forecasted AA 6 51 Cumulative Spreadsheet Project financial statements Handyman wishes to prepare a forecasted balance sheet and income statement for 2013 Use the original financial statement numbers for 2012 (given in part (1) of the Cumula tive Spreadsheet Project assignment in Chapter 2 as the basis for the forecast, along with the following additional information Sales in 2013 are expected to increase by 40 over 2012 sales of $700 In 2013, Handyman expects to acquire new property, plant, and equipment costing $80 1 b The $160 in other operating expenses reported in 2012 includes $5 of depreciation C expense No new long term debt will be acquired in 2013 No cash dividends will be paid in 2013 New short term loans payable will be acquired in an amount sufficient to make d Handyman's current ratio in 2013 exactly equal to 2 0 Note These statements were constructed as part of the spreadsheet assignment in Chapter 4 You can use that spreadsheet as a starting point if you have completed that assignment For this exercise, the current assets are expected to behave as follows iCash and inventory will increase at the same rate as sales i The forecasted amount of accounts receivable in 2013 is determined using the forecasted value for the average collection period For simplicity, do the compu tations using the end of period accounts receivable balance instead of the average balance The average collection period for 2013 is expected to be 14 08 days Receivables Selling a Product or Service Chapter 6 259 Clearly state any additional asumptions that you make 2 Repeat (1), with the following change in assumptions a Average collection period is expected to be 9 06 days b Average collection period is expected to be 20 00 days 3 Comment on the differences in the forecasted values of accounts receivable in 2013 under cach of the following assumptions about the average collection period 14 08 days, 9 06 days, and 20 00 days Under which assumption will Handyman's forecasted cash flow from operating activities be higher Explain Required 1 Calculate the inventory turnover and number of days sales in inventory for the two companies 2 Interpretive Question Are the resules of these ratios what you expected Which com pany is managing its inventory more efficiently Analytical Assignments Preparing New Forecasts This spreadshoet assignment is a continuation of the spreadsheet assignments given in earlier chap ters If you completed those spreadsheets, you have a head start on this one If needed, review the spreadsheet assignment for Chapter 4 to refresh your memory on how to construct forecasted financial statements AA 7 45 Cumulative Spreadsheet Project I Handyman wishes to prepare a forecasted balance sheet and income statement for 2013 Use the original financial statement numbers for 2012 given in part (1) of the Cumula tive Spreadsheet Project assignment in Chapter 2) as the basis for the forecast, along with the following additional information a Sales in 2013 are expected to increase by 40 over 2012 sales of $700 b Cash will increase at the same rate as sales c The forecasted amount of accounts receivable in 2013 is determined using the fore casted value for the average collection period For simplicity, do the computations using the end of period accounes receivable balance instead of the average balance The average collection period for 2013 is expected to be 14 08 days d In 2013, Handyman expects to acquaire new property, plant, and equipment costing $80 The $160 in operating expenses reported in 2012 breaks down as follows $5 depre ciation expense, $155 other operating expenses f No new long term debe will be acquired in 2013 No cash dividends will be paid in 2013 h New short term loans payable will be acquired in an amount sufficient to make Handyman's current ratio in 2013 exactly equal to 2 0 e Note These statements were constructed as part of the spreadsheet assignment in Chapter 6 You can use that spreadsheet as a starting poine if you have completed that assignment Clearly state any additional ammprions thar yew make For this excrcise, add the following additional assumptions i The forecasted amount of inventory in 2013 is determined using the forecasted value for the number of days' sales in inventory (computed using the end of period inventory balance) The number of days' sales in inventory for 2013 is expected to be 107 6 days The forecasted amount of accounts payable in 2013 is determinod using the forecast ed value for the number of days purchases in accounts payable (computed using the end of period accounts payable balance) The number of days' purchases in accounts payable for 2013 is expected to be 48 34 days Repeat (1), with the following changes in assumptions Number of days' sales in inventory is expected to be 66 2 days b Number of days' sales in inventory is expected to be 150 0 days 3 Comment on the differcences in the forecasted values of cash from operating activities in 2013 under each tory 107 6 days, 66 2 days, and 150 0 days 4 2 a the following assumptions about the number of days' sales in inven Is there any impact on the forecasted level of accounts payable when the number of days sales in inventory is changed Why or why not 5 What happens to the forecasted level of short term loans payable when the number of days' sales in inventory is reduced to 66 2 days Explain 318 Part 2 Operating Actvibes Analytical Assignments Creating a Forecasted Balance Sheet and Income Statement This spreadsheet assignment is a continuation of the spreadsheet assignments given in earlier chap ters If you completed those spreadsheets, you have a head start on this one If needed, review the spreadsheet assignment for Chapter 4 to refresh your memory on how to construct forecasted AA 6 51 Cumulative Spreadsheet Project financial statements Handyman wishes to prepare a forecasted balance sheet and income statement for 2013 Use the original financial statement numbers for 2012 (given in part (1) of the Cumula tive Spreadsheet Project assignment in Chapter 2 as the basis for the forecast, along with the following additional information Sales in 2013 are expected to increase by 40 over 2012 sales of $700 In 2013, Handyman expects to acquire new property, plant, and equipment costing $80 1 b The $160 in other operating expenses reported in 2012 includes $5 of depreciation C expense No new long term debt will be acquired in 2013 No cash dividends will be paid in 2013 New short term loans payable will be acquired in an amount sufficient to make d Handyman's current ratio in 2013 exactly equal to 2 0 Note These statements were constructed as part of the spreadsheet assignment in Chapter 4 You can use that spreadsheet as a starting point if you have completed that assignment For this exercise, the current assets are expected to behave as follows iCash and inventory will increase at the same rate as sales i The forecasted amount of accounts receivable in 2013 is determined using the forecasted value for the average collection period For simplicity, do the compu tations using the end of period accounts receivable balance instead of the average balance The average collection period for 2013 is expected to be 14 08 days Receivables Selling a Product or Service Chapter 6 259 Clearly state any additional asumptions that you make 2 Repeat (1), with the following change in assumptions a Average collection period is expected to be 9 06 days b Average collection period is expected to be 20 00 days 3 Comment on the differences in the forecasted values of accounts receivable in 2013 under cach of the following assumptions about the average collection period 14 08 days, 9 06 days, and 20 00 days Under which assumption will Handyman's forecasted cash flow from operating activities be higher Explain

Question

Can you help me with question AA 7 45 Thank you Required  1  Calculate the inventory turnover and number of days sales in inventory for the two companies  2  Interpretive Question  Are the resules of these ratios what you expected  Which com  pany is managing its inventory more efficiently  Analytical Assignments Preparing New Forecasts This spreadshoet assignment is a continuation of the spreadsheet assignments given in earlier chap  ters  If you completed those spreadsheets, you have a head start on this one  If needed, review the spreadsheet assignment for Chapter 4 to refresh your memory on how to construct forecasted financial statements AA 7 45 Cumulative Spreadsheet Project I Handyman wishes to prepare a forecasted balance sheet and income statement for 2013  Use the original financial statement numbers for 2012 given in part (1) of the Cumula  tive Spreadsheet Project assignment in Chapter 2) as the basis for the forecast, along with the following additional information  a  Sales in 2013 are expected to increase by 40  over 2012 sales of $700  b  Cash will increase at the same rate as sales  c  The forecasted amount of accounts receivable in 2013 is determined using the fore casted value for the average collection period  For simplicity, do the computations using the end of period accounes receivable balance instead of the average balance  The average collection period for 2013 is expected to be 14 08 days  d  In 2013, Handyman expects to acquaire new property, plant, and equipment costing $80  The $160 in operating expenses reported in 2012 breaks down as follows  $5 depre  ciation expense, $155 other operating expenses f No new long term debe will be acquired in 2013    No cash dividends will be paid in 2013  h  New short term loans payable will be acquired in an amount sufficient to make Handyman's current ratio in 2013 exactly equal to 2 0  e  Note  These statements were constructed as part of the spreadsheet assignment in Chapter 6  You can use that spreadsheet as a starting poine if you have completed that assignment  Clearly state any additional ammprions thar yew make For this excrcise, add the following additional assumptions i The forecasted amount of inventory in 2013 is determined using the forecasted value for the number of days' sales in inventory (computed using the end of period inventory balance)  The number of days' sales in inventory for 2013 is expected to be 107 6 days The forecasted amount of accounts payable in 2013 is determinod using the forecast  ed value for the number of days purchases in accounts payable (computed using the end of period accounts payable balance)  The number of days' purchases in accounts payable for 2013 is expected to be 48 34 days Repeat (1), with the following changes in assumptions Number of days' sales in inventory is expected to be 66 2 days b Number of days' sales in inventory is expected to be 150 0 days  3  Comment on the differcences in the forecasted values of cash from operating activities in 2013 under each tory  107 6 days, 66 2 days, and 150 0 days 4  2  a  the following assumptions about the number of days' sales in inven  Is there any impact on the forecasted level of accounts payable when the number of days sales in inventory is changed  Why or why not  5  What happens to the forecasted level of short term loans payable when the number of days' sales in inventory is reduced to 66 2 days  Explain  318 Part 2 Operating Actvibes Analytical Assignments Creating a Forecasted Balance Sheet and Income Statement This spreadsheet assignment is a continuation of the spreadsheet assignments given in earlier chap  ters  If you completed those spreadsheets, you have a head start on this one  If needed, review the spreadsheet assignment for Chapter 4 to refresh your memory on how to construct forecasted AA 6 51 Cumulative Spreadsheet Project financial statements  Handyman wishes to prepare a forecasted balance sheet and income statement for 2013  Use the original financial statement numbers for 2012 (given in part (1) of the Cumula  tive Spreadsheet Project assignment in Chapter 2  as the basis for the forecast, along with the following additional information  Sales in 2013 are expected to increase by 40  over 2012 sales of $700  In 2013, Handyman expects to acquire new property, plant, and equipment costing $80  1    b  The $160 in other operating expenses reported in 2012 includes $5 of depreciation C  expense  No new long term debt will be acquired in 2013  No cash dividends will be paid in 2013  New short term loans payable will be acquired in an amount sufficient to make d    Handyman's current ratio in 2013 exactly equal to 2 0  Note  These statements were constructed as part of the spreadsheet assignment in Chapter 4  You can use that spreadsheet as a starting point if you have completed that assignment  For this exercise, the current assets are expected to behave as follows iCash and inventory will increase at the same rate as sales i The forecasted amount of accounts receivable in 2013 is determined using the forecasted value for the average collection period  For simplicity, do the compu  tations using the end of period accounts receivable balance instead of the average balance  The average collection period for 2013 is expected to be 14 08 days  Receivables  Selling a Product or Service Chapter 6 259 Clearly state any additional asumptions that you make 2  Repeat (1), with the following change in assumptions  a  Average collection period is expected to be 9 06 days b  Average collection period is expected to be 20 00 days  3  Comment on the differences in the forecasted values of accounts receivable in 2013 under cach of the following assumptions about the average collection period  14 08 days, 9 06 days, and 20 00 days  Under which assumption will Handyman's forecasted cash flow from operating activities be higher  Explain  Required  1  Calculate the inventory turnover and number of days sales in inventory for the two companies  2  Interpretive Question  Are the resules of these ratios what you expected  Which com  pany is managing its inventory more efficiently  Analytical Assignments Preparing New Forecasts This spreadshoet assignment is a continuation of the spreadsheet assignments given in earlier chap  ters  If you completed those spreadsheets, you have a head start on this one  If needed, review the spreadsheet assignment for Chapter 4 to refresh your memory on how to construct forecasted financial statements AA 7 45 Cumulative Spreadsheet Project I Handyman wishes to prepare a forecasted balance sheet and income statement for 2013  Use the original financial statement numbers for 2012 given in part (1) of the Cumula  tive Spreadsheet Project assignment in Chapter 2) as the basis for the forecast, along with the following additional information  a  Sales in 2013 are expected to increase by 40  over 2012 sales of $700  b  Cash will increase at the same rate as sales  c  The forecasted amount of accounts receivable in 2013 is determined using the fore casted value for the average collection period  For simplicity, do the computations using the end of period accounes receivable balance instead of the average balance  The average collection period for 2013 is expected to be 14 08 days  d  In 2013, Handyman expects to acquaire new property, plant, and equipment costing $80  The $160 in operating expenses reported in 2012 breaks down as follows  $5 depre  ciation expense, $155 other operating expenses f No new long term debe will be acquired in 2013    No cash dividends will be paid in 2013  h  New short term loans payable will be acquired in an amount sufficient to make Handyman's current ratio in 2013 exactly equal to 2 0  e  Note  These statements were constructed as part of the spreadsheet assignment in Chapter 6  You can use that spreadsheet as a starting poine if you have completed that assignment  Clearly state any additional ammprions thar yew make For this excrcise, add the following additional assumptions i The forecasted amount of inventory in 2013 is determined using the forecasted value for the number of days' sales in inventory (computed using the end of period inventory balance)  The number of days' sales in inventory for 2013 is expected to be 107 6 days The forecasted amount of accounts payable in 2013 is determinod using the forecast  ed value for the number of days purchases in accounts payable (computed using the end of period accounts payable balance)  The number of days' purchases in accounts payable for 2013 is expected to be 48 34 days Repeat (1), with the following changes in assumptions Number of days' sales in inventory is expected to be 66 2 days b Number of days' sales in inventory is expected to be 150 0 days  3  Comment on the differcences in the forecasted values of cash from operating activities in 2013 under each tory  107 6 days, 66 2 days, and 150 0 days 4  2  a  the following assumptions about the number of days' sales in inven  Is there any impact on the forecasted level of accounts payable when the number of days sales in inventory is changed  Why or why not  5  What happens to the forecasted level of short term loans payable when the number of days' sales in inventory is reduced to 66 2 days  Explain  318 Part 2 Operating Actvibes Analytical Assignments Creating a Forecasted Balance Sheet and Income Statement This spreadsheet assignment is a continuation of the spreadsheet assignments given in earlier chap  ters  If you completed those spreadsheets, you have a head start on this one  If needed, review the spreadsheet assignment for Chapter 4 to refresh your memory on how to construct forecasted AA 6 51 Cumulative Spreadsheet Project financial statements  Handyman wishes to prepare a forecasted balance sheet and income statement for 2013  Use the original financial statement numbers for 2012 (given in part (1) of the Cumula  tive Spreadsheet Project assignment in Chapter 2  as the basis for the forecast, along with the following additional information  Sales in 2013 are expected to increase by 40  over 2012 sales of $700  In 2013, Handyman expects to acquire new property, plant, and equipment costing $80  1    b  The $160 in other operating expenses reported in 2012 includes $5 of depreciation C  expense  No new long term debt will be acquired in 2013  No cash dividends will be paid in 2013  New short term loans payable will be acquired in an amount sufficient to make d    Handyman's current ratio in 2013 exactly equal to 2 0  Note  These statements were constructed as part of the spreadsheet assignment in Chapter 4  You can use that spreadsheet as a starting point if you have completed that assignment  For this exercise, the current assets are expected to behave as follows iCash and inventory will increase at the same rate as sales i The forecasted amount of accounts receivable in 2013 is determined using the forecasted value for the average collection period  For simplicity, do the compu  tations using the end of period accounts receivable balance instead of the average balance  The average collection period for 2013 is expected to be 14 08 days  Receivables  Selling a Product or Service Chapter 6 259 Clearly state any additional asumptions that you make 2  Repeat (1), with the following change in assumptions  a  Average collection period is expected to be 9 06 days b  Average collection period is expected to be 20 00 days  3  Comment on the differences in the forecasted values of accounts receivable in 2013 under cach of the following assumptions about the average collection period  14 08 days, 9 06 days, and 20 00 days  Under which assumption will Handyman's forecasted cash flow from operating activities be higher  Explain

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