Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Chapter 4, Problem 2P
Philip Morris expects the sales for his clothing company to be
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Philip Morris expects the sales for his clothing company to be $560,000 next year. Philip notes that net assets (Assets – Liabilities) will
remain unchanged. His clothing firm will enjoy a 8 percent return on total sales. He will start the year with $160,000 in the bank.
What will Philip's ending cash balance be?
Ending cash balance
Philip Morris expects the sales for his clothing company to be $550,000 next year. Philip notes that net assets (Assets-Liabilities) will remain unchanged. His clothing firm will enjoy a 12% return on total sales. He will start the year with $150,000 in the bank. What will Philip's ending cash balance be?
Franck Eggelhoffer expects the sales for his clothing company to be $570,000 next year. Franck notes that net assets (Assets − Liabilities) will remain unchanged. His clothing firm will enjoy a 9 percent return on total sales. He will start the year with $170,000 in the bank.
What will Franck’s ending cash balance be?
Chapter 4 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Ch. 4 - What are the basic benefits and purposes of...Ch. 4 - Explain how the collections and purchases...Ch. 4 - With inflation, what are the implications of using...Ch. 4 - Explain the relationship between inventory...Ch. 4 - Prob. 5DQCh. 4 - Discuss the advantage and disadvantage of level...Ch. 4 - What conditions would help make a percent-of-sales...Ch. 4 - Prob. 1PCh. 4 - Philip Morris expects the sales for his clothing...Ch. 4 - Galehouse Gas Stations Inc. expects sales to...
Ch. 4 - The Alliance Corp. expects to sell the following...Ch. 4 - Prob. 5PCh. 4 - Cyber Security Systems had sales of 3,500 units at...Ch. 4 - Dodge Ball Bearings had sales of 15,000 units at...Ch. 4 - Sales for Ross Pro’s Sports Equipment are expected...Ch. 4 - Vitale Hair Spray had sales of 13,000 units in...Ch. 4 - Delsing Plumbing Company has beginning inventory...Ch. 4 - On December 31 of last year, Wolfson Corporation...Ch. 4 - At the end of January, Higgins Data Systems had an...Ch. 4 - At the end of January, Mineral Labs had an...Ch. 4 - Convex Mechanical Supplies produces a product with...Ch. 4 - The Bradley Corporation produces a product with...Ch. 4 - Sprint Shoes Inc. had a beginning inventory of...Ch. 4 - J. Lo’s Clothiers has forecast credit sales for...Ch. 4 - Simpson Glove Company has made the following sales...Ch. 4 - Watt’s Lighting Stores made the following sales...Ch. 4 - Ultravision Inc. anticipates sales of $290,000...Ch. 4 - The Denver Corporation has forecast the following...Ch. 4 - Wright Lighting Fixtures forecasts its sales in...Ch. 4 - The Volt Battery Company has forecast its sales in...Ch. 4 - Graham Potato Company has projected sales of...Ch. 4 - Harry’s Carryout Stores has eight locations. The...Ch. 4 - Archer Electronics Company’s actual sales and...Ch. 4 - Prob. 27PCh. 4 - The Manning Company has financial statements as...Ch. 4 - Conn Man’s Shops, a national clothing chain, had...
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- Phillip Morrisexpects the sales for his clothing companu to be $550,000 next year. Philip notes the net assets (Assets - Liabilities) will remain unchanged. His clothing firm will enjoy a 12% return on total sales. He will start the year with $150,000 in the bank. What will Philip's ending cash balance be?arrow_forwardEli Lilly is very excited because sales for his nursery and plant company are expected to double from $510,000 to $1,020,000 next year. Eli notes that net assets (Assets − Liabilities) will remain at 55 percent of sales. His firm will enjoy an 8 percent return on total sales. He will start the year with $110,000 in the bank and is bragging about the Jaguar and luxury townhouse he will buy. a. Compute his likely cash balance or deficit for the end of the year. Start with beginning cash and subtract the asset buildup (equal to 55 percent of the sales increase) and add in profit. What is the ending cash balance?arrow_forwardA company has just sold a product with the following payment plan: $75, 000 today, $50, 000 at the end of year 1. and $25, 000 at the end of year two. If the payments are deposited into an account earning 4.5% per year, calculate the present value for the cash flow. Show steps using ONLY a financial calculator. The answer should be 145,740.arrow_forward
- Eli Lilly is very excited because sales for his nursery and plant company are expected to double from $580,000 to $1,160,000 next year. Eli notes that net assets (Assets - Liabilities) will remain at 60 percent of sales. His firm will enjoy an 10 percent return on total sales. He will start the year with $180,000 in the bank and is bragging about the Jaguar and luxury townhouse he will buy. a. Compute his likely cash balance or deficit for the end of the year. Start with beginning cash and subtract the asset buildup (equal to 60 percent of the sales increase) and add in profit. (Negative amount should be indicated by a minus sign.) Ending cash balancearrow_forwardKonerko, Inc., manageent expects the company to earn cash flows of $13,227, $15,611, $18,970, and $19, 114 over the next four years. If the company uses an 8 percent discount rate, what is the future value of these cash flows at the end of year 4?arrow_forwardThe firm PAR inc. forecasts monthly disbursements of $ 75,000 over the next year. The firm invests its cash in treasury bills at an annual rate of 30%. A treasury bill transaction costs the firm $ 150.a) What would be the optimal amount of treasury bills that the business must sell to minimize the total cost of cash on hand during the year? b) What would that total cost of cash be during the year?arrow_forward
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- The table shows the forecast cash flow information of Good Time Inc. for the nextyear. The required debt payment in the next year is $88 million, with a current market valueof $60 million. The company pays no tax. If you invest in the corporate debt of Good TimeInc. today, what is your expected return on this investment?arrow_forwardSoo Ling wants to start a business that she believes can produce cash flows of RM5,600, RM48,200, and RM125,000 at the end of each of the next three years, respectively. At the end of three years, she thinks she can sell the business for RM250,000. At a discount rate of 16 percent, what is her business worth today? Select one: A. RM314,011.33 B. RM297,077.17 C. RM325,837.81 D. RM280,894.67arrow_forwardJosh purchased a new machine for his business. Josh expects to produce 80 products at P 100,000.00 per item in each of the first 3 years, after which it expects to produce 100 products per year at P 125,000.00 per item through year 8. If Josh's minimum attractive rate of return is 18% per year, what is the present worth of the expected revenue? Draw the cash flow diagram.arrow_forward
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