The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 60 percent of the next quarter's forecast sales. Thepayables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $114 per quarter.No capital expenditures are planned. Projected quarterly sales are:SalesQ1$ 1,500Q2Q304$ 1,650 $ 1,710 $ 1,950Sales for the first quarter of the following year are projected at $1,620. Calculate the company's cash outlays by completing thefollowing:Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.Payment of accountsWages, taxes, other expensesLong-term financing expenses (interest and dividends)TotalQ1Q2Q3Check my workQ4

Variables in the question: Q1 Q2 Q3 Q4Projected Sales…

The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 60 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $114 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $ 1,500 $ 1,650 $ 1,710 $ 1,950 Sales for the first quarter of the following year are projected at $1,620. Calculate the company's cash outlays by completing the following: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Q4

The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 60 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $114 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $ 1,500 $ 1,650 $ 1,710 $ 1,950 Sales for the first quarter of the following year are projected at $1,620. Calculate the company's cash outlays by completing the following: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Q4

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

See similar textbooks

Similar questions

It is December 31. Last year, Galaxy Corporation had sales of $80,000,000, and it forecasts that next year's sales will be $86,400,000. Its fixed costs have been-and are expected to continue to be-$44,000,000, and its variable cost ratio is 10.00 %. Galaxy's capital structure consists of a $15 million bank loan, on which it pays an interest rate of 12%, and 5,000,000 shares of outstanding common equity. The company's profits are taxed at a marginal rate of 35%. The following are the two principal equations that can be used to calculate a firm's DFL value: DFL (at EBIT = $X) = Given this information, complete the following sentences: Percentage Change in EPS Percentage Change in EBIT Consider the following statement about DFL, and indicate whether or not it is correct. 0 0 DFL (at EBITSX) = • The company's percentage change in EBIT is . The percentage change in Galaxy's earnings per share (EPS) is • The degree of financial leverage (DFL) at $86,400,000 is. (Hint: Use the changes in EPS…
X Ltd. has annual sales of 10,000 units at $300 per unit. The annual fixed costs amount to $300,000. The variable cost is $200 per unit. The current credit period is 1 month. The company is considering a proposal to increase the credit period. Fixed cost will increase by $60,000 on account of increase in sales beyond 25% of present level. The company plans a pre-tax return of 15% on investment in receivables. Requirements: 1. Calculate the most paying credit policy for the company. 2. Analyze the results in detail.
X Ltd. has annual sales of 10,000 units at $300 per unit. The annual fixed costs amount to $300,000. The variable cost is $200 per unit. The current credit period is 1 month. The company is considering a proposal to increase the credit period. Fixed cost will increase by $60,000 on account of increase in sales beyond 25% of present level. The company plans a pre-tax return of 15% on investment in receivables. Requirements: 1. You are required to calculate the most paying credit policy for the company. 2. Breifly describe the process and provide the analysis of the results.
Mazon Inc. plans to sell 7,000 units each quarter next year. During the first two quarters each unit will sell for OMR12; during the last two quarters the sales price will increase OMR1.50 per unit. What is Mazon's estimated sales revenue for next year? Select one: a. OMR 397,000 b. OMR 357,000 c. OMR 378,000 d. OMR 336,000
Camp Manufacturing turns over its inventory eight times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The firm’s annual sales are $3.5 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables and that there is a 365-day year. If the firm pays 14% for these resources, by how much would it increase its annual profits by favorably changing its current cash conversion cycle by 20 days?
It is December 31. Last year, Campbell Construction had sales of $80,000,000, and it forecasts that next year’s sales will be $76,000,000. Its fixed costs have been—and are expected to continue to be—$40,000,000, and its variable cost ratio is 21.00%. Campbell’s capital structure consists of a $15 million bank loan, on which it pays an interest rate of 8%, and 750,000 shares of common equity. The company’s profits are taxed at a marginal rate of 40%. The following are the two principal equations that can be used to calculate a firm’s DFL value: DFL (at EBIT = $X)=Percentage Change in EPSPercentage Change in EBITDFL (at EBIT = $X)=Percentage Change in EPSPercentage Change in EBIT DFL (at EBIT = $X)=EBITEBIT−Interest−Preferred Dividends(1 – Tax Rate)DFL (at EBIT = $X)=EBITEBIT−Interest−Preferred Dividends(1 – Tax Rate) Given this infromation, complete the following sentences: • The company’s percentage change in EBIT is ______(-12.26%/ -16.34%/ -13.62%) . • The percentage change…
The Lux Co. has an inventory conversion period of 60 days, a receivable conversion period of 35 days, and a payable payment period of 45 days. The Lux Co.’s variable cost ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is 12%.If Lux Co.’s annual sales are P3,375,000 and all sales are on credit, what is the firm’s carrying cost on accounts receivable, using 360 days year?
National Co. has an inventory conversion period of 60 days, a receivable conversion period of 35 days, and a payable payment period of 45 days. The National Co.’s variable cost ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is 12%.If National Co.’s annual sales are P3,375,000 and all sales are on credit, what is the firm’s carrying cost on accounts receivable, using 360 days year?
Compost Wholesalers presently uses a public warehouse agreement to finance most of its inventory. The average amount of inventory is $4,000,000, the bank will loan at 5.5 % per annum for the 6-week loan. The loan amount will be against 70 percent of the value of the inventory, and the public warehouse fee is $2,500 per week. Total transportation cost for the loan period is 1.5 percent of the average value of the inventory [that is, (0.015)($4,000,000)]. Find period rate Find m Find the annual percentage rate (APR) Find the effective annual cost (EAR)
AB Company’s budgeted sales and cost of sales for the coming year are P72 million and P45 million respectively. Shortterm interest rates are expected to average 10%. If the company can increase inventory turnover from its current levelof 9 times per year to 12 times per year, its cost savings in the coming year are expected to beA. P125,000 C. P375,000B. P300,000 D. P500,000
XYZ Company's single product has a selling price of $15 per unit. The fixed expenses were $120,000. This year the company reported a net operating income of $60,000. If sales are predicted to increase by 10% next year, how much would the increase in profits be in ($)?
ABC Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sell to generate a target profit (net operating income) of $80,000?