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Norfolk Industries produced 200 calculators this quarter, resulting in a total cash outlay of 20 per calculator. It will sell 100 of them next quarter
- Norfolk Industries produced 200 calculators this quarter, resulting in a total cash outlay of 20 per calculator. It will sell 100 of them next quarter at a price of 22, and the other 75 calculators in the third quarter at a price of 24. The company will sell no calculator in the fourth quarter. It takes a full quarter for Norfolk Industries to collect its bill from customers.
- What are the net incomes for Norfolk Industries in Quarters 1, 2, 3, and 4?
[3 marks]
- What are Norfolk Industries net working capitals in Quarters 1, 2, 3, and 4?
[3 marks]
- What are the cash flows for Norfolk Industries in Quarters 1, 2, 3, and 4?
[4 marks]
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
