Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Under the assumptions that Ideko's market share will increase by 0.55 percent per year (enptying that the investment, financing. and dopreciation wil bo adiusted accordingfy)

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Under the assumptions that Ideko's market share will increase by 0.55 percent per year (enptying that the investment, financing. and dopreciation wil bo adiusted accordingfy) and the following forecasts ( Calculate ldeko's working capilal requirements through 2010 (that is, reproduce Table 19.9 under the new assumptions). ideko's pro-forma income atalements for 20052010 ar shown here while is balance sheot for 2005 is shown here Calculate ldeko's working caplal requirements through 2010 below. (Round to the nearest $600.) Ideko's Working Capital Requirements \begin{tabular}{llcc} \hline Working Capital Days & & 2005 & >2005 \\ \hline Assets & Based on: & Days & Days \\ Accounts Receivable & Sales Revenue & 90 & 60 \\ Raw Materials & Raw Materials Costs & 45 & 30 \\ Finished Goods & Raw Materials + Labor Costs & 45 & 45 \\ Minimum Cash Balance & Sales Revenue & 30 & 30 \\ Liabilities & & 15 & 15 \\ Wages Payable & Direct Labor + Admin Costs & 45 & 45 \\ \hline Other Accounts Payable & Raw Materials + Sales and Marketing & \end{tabular} Estimated 2005 Balance Sheet Data for Ideko Corporation \begin{tabular}{lr} \hline Balance Sheet (\$ 000) & \\ Assets & 6,164 \\ Cash and Equivalents & 18,400 \\ Accounts Receivable & 6,165 \\ Inventories & 30,729 \\ \hline Total Current Assets & 50,130 \\ Property, Plant, and Equipment & 72,332 \\ Goodwill & 153,191 \\ \hline Total Assets & \\ \hline & 4,654 \\ \hline Liabilities and Stockholders' Equity & 100,000 \\ \hline Accounts Payable & 104,654 \\ Debt & 48,537 \\ \hline Total Liabilities & 153,191 \\ \hline Stockholders' Equity & \\ \hline Total Liabilities and Equity & \end{tabular} Under the assumptions that Ideko's market share will increase by 0.55 percent per year (enptying that the investment, financing. and dopreciation wil bo adiusted accordingfy) and the following forecasts ( Calculate ldeko's working capilal requirements through 2010 (that is, reproduce Table 19.9 under the new assumptions). ideko's pro-forma income atalements for 20052010 ar shown here while is balance sheot for 2005 is shown here Calculate ldeko's working caplal requirements through 2010 below. (Round to the nearest $600.) Ideko's Working Capital Requirements \begin{tabular}{llcc} \hline Working Capital Days & & 2005 & >2005 \\ \hline Assets & Based on: & Days & Days \\ Accounts Receivable & Sales Revenue & 90 & 60 \\ Raw Materials & Raw Materials Costs & 45 & 30 \\ Finished Goods & Raw Materials + Labor Costs & 45 & 45 \\ Minimum Cash Balance & Sales Revenue & 30 & 30 \\ Liabilities & & 15 & 15 \\ Wages Payable & Direct Labor + Admin Costs & 45 & 45 \\ \hline Other Accounts Payable & Raw Materials + Sales and Marketing & \end{tabular} Estimated 2005 Balance Sheet Data for Ideko Corporation \begin{tabular}{lr} \hline Balance Sheet (\$ 000) & \\ Assets & 6,164 \\ Cash and Equivalents & 18,400 \\ Accounts Receivable & 6,165 \\ Inventories & 30,729 \\ \hline Total Current Assets & 50,130 \\ Property, Plant, and Equipment & 72,332 \\ Goodwill & 153,191 \\ \hline Total Assets & \\ \hline & 4,654 \\ \hline Liabilities and Stockholders' Equity & 100,000 \\ \hline Accounts Payable & 104,654 \\ Debt & 48,537 \\ \hline Total Liabilities & 153,191 \\ \hline Stockholders' Equity & \\ \hline Total Liabilities and Equity & \end{tabular}

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

Step: 3

blur-text-image

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

The Lean Audit A Detailed User Guide For The Lean Factory Audit Online

Authors: Isaias Wallaker

1st Edition

B09R3HXJ11, 979-8408651320

More Books

Students also viewed these Accounting questions

Question

What is the value of global leaders?

Answered: 1 week ago