A firm with annual sales of $7,600,000 increases its inventory turnover from 4.0 to 4.5. How much would the company save annually in interest expense if the cost of carrying the inventory is 10 percent? Round your answer to the nearest dollar. $

Suppose your firm receives a $4.34 million order on the last day of the year. You fill the order with $1.82 million worth of inventory. The customer picks up the entire order the same day and pays $1.17 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $3.17 million within 40 days. Suppose your firm's tax rate is 0% (i.e., ignore taxes). Determine the consequences of this transaction for each of the following: d. Inventory e. Cash a. Revenues b. Earnings c. Receivables a. Revenues Revenues will increase by $ million. (Select from the drop-down menu and round to two decimal places.) b. Earnings Earnings will increase by $ million. (Select from the drop-down menu and round to two decimal places.) c. Receivables Receivables will increase by $ million. (Select from the drop-down menu and round to two decimal places.) d. Inventory Inventory will decrease by $ million. (Select from the drop-down menu and round to two decimal places.) е. Cash…

Fairchild Garden Supply expects $580 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this equation to forecast inventory requirements at different levels of sales: Inventories = $30.2 + 0.25(Sales). All dollars are in millions. The firm's cost of goods sold is expected to be 70% of sales. What is the projected inventory turnover ratio for the coming year? Please explain process and show calculations.

​Jim's Espresso expects sales to grow by 10.4% next year. Using the following statements LOADING... and the percent of sales​ method, forecast: a. Costs b. Depreciation c. Net Income d. Cash e. Accounts receivable f. Inventory g.​ Property, plant, and equipment ​(​Note: Make sure to round all intermediate calculations to at least five decimal​ places.) The Tax Cuts and Jobs Act of 2017 temporarily allows​ 100% bonus depreciation​ (effectively expensing capital​ expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement    Sales    $207,620Costs Except Depreciation    (100,360)EBITDA    $107,260Depreciation    (6,050)EBIT    $101,210Interest Expense (net)    (500)Pretax Income    $100,710Income Tax    (35,249)Net Income    $65,461   Balance Sheet    Assets    Cash and Equivalents    $14,990Accounts Receivable    1,980Inventories…

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Last year, the company's sales were $2,250,000. If sales grow at 6% per year, how large will it be 5 years later? Round-off answer to 2 decimal values. *

2. Margetis Inc. carries an average inventory of $750,000. Its annual sales are $10 million, its cost of goods sold is 75% of annual sales, and its average collection period is twice as long as its inventory conversion period. The firm buys on terms of net 30 days, and it pays on time. Its new CFO wants to decrease the cash conversion cycle by 10 days, based on a 365-day year. He believes he can reduce the average inventory to $647,260 with no effect on sales. By how much must the firm also reduce its accounts receivable to meet its goal in the reduction of the cash conversion cycle?

15.  A company is considering increasing the period of credit allowed to customers from 30 days to 45 days. Annual sales are currently £1,200,000, and annual profits are £100,000. It is anticipated that allowing extended credit would increase sales by 15%, while net profit margins would be unchanged. The working capital is financed by using an overdraft costing 10% per annum. Assume that there is no change in the absolute level of the inventory or account payable. What is the financial effect of the proposal (assume a year is 360 days)? A   Reduction in profit of £10,000 B   Increase in profit of £10,000 C   Increase in profit of £15,000 D   Increase in profit of £7,750

A firm with annual sales of $8,500,000 increases its inventory turnover from 3.0 to 4.0. How much would the company save annually in interest expense if the cost of carrying the inventory is 6 percent? Round your answer to the nearest dollar.

A product has sales of $7M this year, but sales are expected to decline at 10% per year until it is discontinued after year 5. If the firm’s interest rate is 15%, calculate the PW of the revenues.