Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Chapter 22, Problem 8MC
Assume that it is now July of Year 1 and that the brothers are developing projected financial statements for the following year. Further, assume that sales and collections in the first half-year matched the predicted levels. Use the Year-2 sales
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Students have asked these similar questions
Use the "percent of sales method" of preparing pro forma financial statements to determine the
projection for next year's accounts receivable. Make the following assumptions: current year's
sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to
rise by 25%, The firm's investment in accounts receivable in the current year is $12,600,000.
The firm's marginal tax rate is 35%. What is the projection for next year's accounts
receivable?
$10,320,000
$11,345,000
O $15,750,000
$8,772,000
Davis and Davis have expected sales of $490, $465, $450, and $570 for the months of
January through April, respectively. The accounts receivable period is 28 days. What is
the accounts receivable balance at the end of March? Assume a year has 360 days. a.
$450 b. $420 c. $440 d. $426
Lotus fabrics wants to forecast its accounts receivable for the year 2021 with the following
annual information. Also state two advantages of forecasting of accounts receivables for the
entity.
Receivable days assumption = 60 days
Payable days assumption = 72 days
Forecasted revenue = 325,000
Forecasted cost of goods sold = 180,250
Choices:
51,195
53,425
49,800
41,705
Chapter 22 Solutions
Intermediate Financial Management (MindTap Course List)
Ch. 22 - Prob. 1QCh. 22 - Prob. 2QCh. 22 - Is it true that if a firm calculates its days...Ch. 22 - Firm A had no credit losses last year, but 1% of...Ch. 22 - Indicate by a (+), (), or (0) whether each of the...Ch. 22 - Cost of Bank Loan On March 1, Minnerly Motors...Ch. 22 - Cost of Bank Loan Mary Jones recently obtained an...Ch. 22 - Del Hawley, owner of Hawleys Hardware, is...Ch. 22 - Gifts Galore Inc. borrowed 1.5 million from...Ch. 22 - Relaxing Collection Efforts The Boyd Corporation...
Ch. 22 - Tightening Credit Terms Kim Mitchell, the new...Ch. 22 - Effective Cost of Short-Term Credit Yonge...Ch. 22 - Monitoring of Receivables
The Russ Fogler Company,...Ch. 22 - Prob. 10PCh. 22 - Prob. 1MCCh. 22 - Prob. 2MCCh. 22 - Prob. 3MCCh. 22 - Prob. 4MCCh. 22 - Prob. 5MCCh. 22 - Prob. 6MCCh. 22 - Prob. 7MCCh. 22 - Assume that it is now July of Year 1 and that the...Ch. 22 - Now assume that it is several years later. The...Ch. 22 - Prob. 10MCCh. 22 - Prob. 11MCCh. 22 - Prob. 12MCCh. 22 - Prob. 13MCCh. 22 - Prob. 14MCCh. 22 - Suppose the firm makes the change but its...
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