Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

David Oaks is very excited because sales for his nursery and plant company are expected to double from exist750,000 to exist1, 500,000 next year. He

image text in transcribed
David Oaks is very excited because sales for his nursery and plant company are expected to double from exist750,000 to exist1, 500,000 next year. He notes that net assets (Assets -Liabilities) will remain at 50 percent of sales. His firm will enjoy a 12 percent return on total sales. He will start the year with exist100,000 in the bank and is bragging about the Jaguar and luxury townhouse he will buy. Does his optimistic outlook for his cash position appear to be correct? Compute his likely cash balance or deficit for the end of the year. Start with beginning cash and subtract the asset buildup (equal to 50 percent of the sales increase) and add in profit. Dudley Dooright expects the sales for his clothing company to be exist550,000 next year. He notes that net assets (Assets -Liabilities) will remain unchanged. His clothing firm will enjoy an 18 percent return on total sales. He will start the year with exist75,000 in the bank. What would the ending cash balance be? De Queen Boat Motor Company had sales of 10,000 units at exist650 per unit last year. The marketing manager projects a 17 percent increase in unit volume sales this year with a 10 percent price decrease. Returned merchandise will represent 3 percent of total sales. What is the net dollar sales projection for this year? The Dardanelle Pipe Manufacturing Company has beginning inventory of 41,000 units, projects sales of 41, 500 units for the month, and desires to maintain ending inventory at 25 percent of projected sales. How many units should be produced? On December 31 of last year, Dumas Technology Corporation had an inventory of 4, 500 units of its product, which cost exist220 per unit to produce. During January, the company produced 8, 500 units at a cost of exist250 per unit. Assuming that the Corporation sold 9,000 units in January, what was the cost of goods sold? (Assume LIFO inventory accounting.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Led Capitalism Shadow Banking Re Regulation And The Future Of Global Markets

Authors: Robert Guttmann

1st Edition

1137398566, 978-1137398567

More Books

Students also viewed these Finance questions