Question

Assuming that​ KXS's market share will increase by .23​% per​ year, you determine that the plant will require an expansion in 2020. The expansion will cost 20.7 million. Assume the​ following: the financing of the expansion will be delayed accordingly​ (end of 2020​), KXS uses a​ ten-year bond, interest rates remain the​ same, and​ KXS's tax rate is 35​%. Using the accompanying table of projected​ values, calculate​ KXS's additional annual working capital requirements through 2023.

Projected values $(000s) Accounts Receivable Inventory Cash Accounts Payable 2018 14,272 14,914 11,903 11,970 2019 15,628 16,

A) The additional annual working capital requirements for 2019 will be _____ thousand. ​(Round to the nearest​ integer.)

B) The additional annual working capital requirements for 2020 will be _____ thousand. ​(Round to the nearest​ integer.)

C) The additional annual working capital requirements for 2021 will be _____ thousand. ​(Round to the nearest​ integer.)

D) The additional annual working capital requirements for 2022 will be _____ thousand. ​(Round to the nearest​ integer.)

E)The additional annual working capital requirements for 2023 will be _____ thousand. ​(Round to the nearest​ integer.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1


Given Projected Value $(000s) Account Receivables Inventory 2018 2021 2022 2019 2020 2023 14272 14914 15628 16434 20696 21730

Add a comment
Know the answer?
Add Answer to:
Assuming that​ KXS's market share will increase by .23​% per​ year, you determine that the plant...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Airmedia Corporation acquires Bridgeline Inc. for cash and stock on January 1, 2019. One of Bridgeline’s...

    Airmedia Corporation acquires Bridgeline Inc. for cash and stock on January 1, 2019. One of Bridgeline’s previously unreported identifiable intangible assets is developed technology, which Airmedia can use to produce unique media services demanded by customers, thereby increasing revenues. Management estimates related to the incremental effect of the developed technology on future cash flows are as follows: • Projected revenue for 2019 is $25,000,000. • Projected annual revenue growth rate is 25%. • Cost of sales and operating expenses are...

  • answer all parts fully. thank you! Please first analyze cash flows for Project L. Then calculate...

    answer all parts fully. thank you! Please first analyze cash flows for Project L. Then calculate NPV and IRR, and make your capital budgeting decision. To study the health-food market, Allied has done a market research in 2019. This market research costed Allied $10k. The research confirmed Allied's previous belief that the health-food industry has a huge potential and will be a highly profitable industry. Therefore, Allied is considering a new expansion project. Proiect L, which is a new health-food...

  • TopCap Co. is evaluating the purchase of another sewing machine that will be used to manufacture...

    TopCap Co. is evaluating the purchase of another sewing machine that will be used to manufacture sport caps. The invoice price of the machine is $124,000. In addition, delivery and installation costs will total $5,500. The machine has the capacity to produce 12,000 dozen caps per year. Sales are forecast to increase gradually, and production volumes for each of the five years of the machine's life are expected to be as follows: Use Table 6-4. (Use appropriate factor(s) from the...

  • 21. Problem 9.21 (Nonconstant Growth) еВook Assume that it is now January 1, 2019. Wayne-Martin Electric...

    21. Problem 9.21 (Nonconstant Growth) еВook Assume that it is now January 1, 2019. Wayne-Martin Electric Inc. (WME) has developed a solar panel capable of generating 200% more electricity than any other solar panel currently on the market. As a result, WME is expected to experience a 14% annual growth rate for the next 5 years. Other firms will have developed comparable technology by the end of 5 years, and WME's growth rate will slow to 5% per year indefinitely....

  • Need help on finance! Assume that it is now January 1, 2019. Wayne-Martin Electric Inc. (WME) has developed a solar pane...

    Need help on finance! Assume that it is now January 1, 2019. Wayne-Martin Electric Inc. (WME) has developed a solar panel capable of generating 200% more electricity than any other solar panel currently on the market. As a result, WME is expected to experience a 14% annual growth rate for the next 5 years. Other firms will have developed comparable technology by the end of 5 years, and WME's growth rate will slow to 6% per year indefinitely. Stockholders require...

  • JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...

    JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...

  • JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...

    JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...

  • JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...

    JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...

  • JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per...

    JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT