Homework Answers
The answer will be option “d” – financial risk and cash flow.
Financial risk is the risk that owners of capital for a business might lose money. When growth in sales for a business is low then financial risk quantum increases and vice versa. Cash flow from operations is linearly linked to sales growth. The higher the sales growth the higher will be the annual increase in cash generated from operations.
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Looking at a business's sales growth is a useful beginning point for assessin a. Marketing plans...
1. QUESTION 7 Identify the most likely effect of high sales growth on a business's financial...
1. QUESTION 7 Identify the most likely effect of high sales growth on a business's financial situation a. Cash flow that increases at an accelerated rate, b. Decreasing Accounts Payable days. c. Decreasing cash flow as asset requirements use up cash. d. Decreasing fixed asset needs relative to sales.
QUESTION 1 The amount of a business's financial risk is particularly influenced by which of the...
QUESTION 1 The amount of a business's financial risk is particularly influenced by which of the town a Technological advances. b. Historical and projected levels of sales growth. c. Business competitors. d. Global economic conditions.
Problem SFP4-2 FINANCIAL PLANNING AND GROWTH CONSIDERATIONS Clueless, Inc. Balance Sheet at 12/31/2019 (000's) Cash &...
Problem SFP4-2 FINANCIAL PLANNING AND GROWTH CONSIDERATIONS Clueless, Inc. Balance Sheet at 12/31/2019 (000's) Cash & Marketable Securities 60 Accounts Payable 50 Accounts Receivable 111 Long-Term Debt 293 Inventories 150 Total Liabilities 343 Total Current Assets 321 Common Stock 145 Net Fixed Assets 250 Retained Earnings 83 Total Assets 571 Total Liabilities and Capit 571 Additional considerations: Sales for 2019 were $1,000,000; Net Income after Tax = $60,000 Management's estimates for the next years: Sales growth @30% for 2020 Net...
Problem SFP4-2 FINANCIAL PLANNING AND GROWTH CONSIDERATIONS Clueless, Inc. Balance Sheet at 12/31/2019 (000's) Cash &...
Problem SFP4-2 FINANCIAL PLANNING AND GROWTH CONSIDERATIONS Clueless, Inc. Balance Sheet at 12/31/2019 (000's) Cash & Marketable Securities 60 Accounts Payable 50 Accounts Receivable Long-Term Debt 293 Inventories 150 Total Liabilities Total Current Assets 321 Common Stock 145 Net Fixed Assets 250 Retained Earnings 83 Total Assets 571 Total Liabilities and Capi 571 Additional considerations: Sales for 2019 were $1,000,000; Net Income after Tax = $60,000 Management's estimates for the next years: Sales growth @30% for 2020 Net Income after...
(2) Schedules Complete the sales and merchandise purchase plans with supporting schedules: a) A sales plan...
(2) Schedules
Complete the sales and merchandise purchase plans with supporting
schedules:
a) A sales plan by month and in total, including a schedule of
projected cash collections from sales and accounts receivable, by
month and in total (2 schedules).
b) An inventory purchases plan in units and in dollars, including a
schedule of projected cash payments for purchases, by month and in
total (3 schedules).
NOTE: All schedules and budgets should be calculated based on
information entered into the...
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal...
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 12,900 2nd Quarter 13,900 3rd Quarter 15,900 4th Quarter 14,900 Budgeted unit sales The selling price of the company's product is $28 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning...
Hass Company Part a $ 250,000 October sales Sales in cash Sales in accounts receivable Expected...
Hass Company Part a $ 250,000 October sales Sales in cash Sales in accounts receivable Expected sales growth per month 40% 5% 100% Part b. Accounts receivable collected in month following sales Part c. Cost of goods sold as percentage of sales Ending inventory -percent of next 10% month's cost of goods sold December estimated ending inventory $12,000 Part d Accounts payable paid in month 70% of purchase Accounts payable paid in month 30 following purchase Part e. Salary expense...
You are given the following information for the year 20x9: Total net sales Net cash sales...
You are given the following information for the year 20x9: Total net sales Net cash sales Accounts receivable at beginning of year Accounts receivable at end of year Inventory at beginning of year Inventory at end of year What is the days sales in accounts receivable for 20x9? $348821 69772 58538 · 62396 17757 62627 Select one: O a. 158 days O b.53 days c. 63 days d. 79 days Check
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal...
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted unit sales First Quarter 17,900 Second Quarter 16,900 Third Quarter 15,900 Fourth Quarter 16,900 The selling price of the company's product is $31.00 per unit. Management expects to collect 85% of sales in the quarter in which the sales are made and 10% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable,...
The company has just hired a new marketing manager who insists that unit sales can be...
The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 50,000 65,000 120,000 65,000 80,000 90,000 Selling price per unit $7 1 2 3 4 5 6 7 8 9 10 11 12 13...
1. QUESTION 7 Identify the most likely effect of high sales growth on a business's financial situation a. Cash flow that increases at an accelerated rate, b. Decreasing Accounts Payable days. c. Decreasing cash flow as asset requirements use up cash. d. Decreasing fixed asset needs relative to sales.
QUESTION 1 The amount of a business's financial risk is particularly influenced by which of the town a Technological advances. b. Historical and projected levels of sales growth. c. Business competitors. d. Global economic conditions.
Problem SFP4-2 FINANCIAL PLANNING AND GROWTH CONSIDERATIONS Clueless, Inc. Balance Sheet at 12/31/2019 (000's) Cash & Marketable Securities 60 Accounts Payable 50 Accounts Receivable 111 Long-Term Debt 293 Inventories 150 Total Liabilities 343 Total Current Assets 321 Common Stock 145 Net Fixed Assets 250 Retained Earnings 83 Total Assets 571 Total Liabilities and Capit 571 Additional considerations: Sales for 2019 were $1,000,000; Net Income after Tax = $60,000 Management's estimates for the next years: Sales growth @30% for 2020 Net...
Problem SFP4-2 FINANCIAL PLANNING AND GROWTH CONSIDERATIONS Clueless, Inc. Balance Sheet at 12/31/2019 (000's) Cash & Marketable Securities 60 Accounts Payable 50 Accounts Receivable Long-Term Debt 293 Inventories 150 Total Liabilities Total Current Assets 321 Common Stock 145 Net Fixed Assets 250 Retained Earnings 83 Total Assets 571 Total Liabilities and Capi 571 Additional considerations: Sales for 2019 were $1,000,000; Net Income after Tax = $60,000 Management's estimates for the next years: Sales growth @30% for 2020 Net Income after...
(2) Schedules
Complete the sales and merchandise purchase plans with supporting
schedules:
a) A sales plan by month and in total, including a schedule of
projected cash collections from sales and accounts receivable, by
month and in total (2 schedules).
b) An inventory purchases plan in units and in dollars, including a
schedule of projected cash payments for purchases, by month and in
total (3 schedules).
NOTE: All schedules and budgets should be calculated based on
information entered into the...
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 12,900 2nd Quarter 13,900 3rd Quarter 15,900 4th Quarter 14,900 Budgeted unit sales The selling price of the company's product is $28 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning...
Hass Company Part a $ 250,000 October sales Sales in cash Sales in accounts receivable Expected sales growth per month 40% 5% 100% Part b. Accounts receivable collected in month following sales Part c. Cost of goods sold as percentage of sales Ending inventory -percent of next 10% month's cost of goods sold December estimated ending inventory $12,000 Part d Accounts payable paid in month 70% of purchase Accounts payable paid in month 30 following purchase Part e. Salary expense...
You are given the following information for the year 20x9: Total net sales Net cash sales Accounts receivable at beginning of year Accounts receivable at end of year Inventory at beginning of year Inventory at end of year What is the days sales in accounts receivable for 20x9? $348821 69772 58538 · 62396 17757 62627 Select one: O a. 158 days O b.53 days c. 63 days d. 79 days Check
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted unit sales First Quarter 17,900 Second Quarter 16,900 Third Quarter 15,900 Fourth Quarter 16,900 The selling price of the company's product is $31.00 per unit. Management expects to collect 85% of sales in the quarter in which the sales are made and 10% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable,...
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