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421 adoar.adu Oh- 4207 Yahoo Appie Coud Googe ntents DISCUSS PROJECTS PROJECT 1: Problems and Question JECT 1: Problems and Questions Consider the following information from 2 companies: Island LLC. and Hawai INC. Island LC currently has $300,000 in accounts receivable and DSO is to 20 days by forcing customers to pay their bills on time. If they want to reduce DSO, they will need to change their current policy. If this new policy is adopted, the average sales will fall by 15%. 50 days t wants to reduce DSO Hawaii INC recently reported net income of $7,000,000. It has 500,000 shares of common stock, which at $28 per share. Hawai contnues to expand and anticipates net income 1 year from now at 13,000.000. Over the next year, they also anticipate issuing an so that 1 year from now, they will have 580,000 shares of common stock. additional 80,000 shares of stock PRIMARY POST: Question 3 1) For Island LLC, what are Current Sales? 2) For Island LLC, what will Sales be after the policy change? 3) For Island LLC, what will the accounts receivable be following the change? 4) What is the current EPS for Hawaii INC? 5) Assume Hawaii INC will maintain its current price/earning ratio, what will be its stock price 1 year from now? 80
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LLC auuent. bso (says saus outstanding)-50 days New bSO ク 20days Caleutation ots cunrenct sales bays Saues Brutstandina Areceunt Ractnables X 365 days 365 Total eolit sates xlTotal Uedit sans can be taken as Totol Sales、a8Caan aatesus Notginenin Sneshon X365 5o dos Tstal sales sales 千 1861,5 。 41961,SoO

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