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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago, 5 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
| Balance Sheet | Â | Â | Â | Â | Â | Â |
| Â | Â | 2007 | 2008 | 2009 | 2010 | 2011 |
| Cash / Equivlants | Â | 75 | 75 | 90 | 100 | 100 |
| Accounts Receivable | Â | 300 | 400 | 600 | 550 | 500 |
| Inventory | Â | 150 | 250 | 350 | 250 | 250 |
| Net Fixed Assets | Â | 525 | 575 | 610 | 540 | 465 |
| Total Assets | Â | 1050 | 1300 | 1650 | 1440 | 1315 |
| Â | Â | Â | Â | Â | Â | Â |
| Accounts Payable | Â | 125 | 175 | 250 | 225 | 200 |
| Notes Payable | Â | 165 | 162 | 178 | 136 | 99 |
| Accured operating Exp. | Â | 60 | 161 | 165 | 89 | 76 |
| Long term-debr | Â | 500 | 400 | 300 | 100 | 50 |
| stockholders equity | Â | 200 | 402 | 757.2 | 890.2 | 890.2 |
|
total liabilties |
 | 1050 | 1300 | 1650 | 1440 | 1315 |
| Income Statement | 2007 | 2008 | 2009 | 2010 | 2011 |
| Revenue | 1500 | 2250 | 3000 | 2000 | 1500 |
| Cost of Good sold | 600 | 900 | 1200 | 800 | 600 |
| Operating Expenses | 600 | 797 | 895 | 750 | 725 |
| Depreciation | 35 | 50 | 65 | 70 | 75 |
| Interest | 30 | 33 | 28 | 25 | 10 |
| Taxes | 94 | 188 | 325 | 142 | 36 |
| NET PROFIT | 141 | 282 | 487.2 | 213 | 54 |
| Dividends | 40 | 80 | 132 | 80 | 54 |
Suppose that the treasurer of J. Washam targets a cash burn rate of 250 days for the firm in the year 2012.
a) Assuming that COGS are expected to remain unchanged from 2011, then what change (increase or decrease) in cash would be warranted?
B) Assuming that cash holdings will remain unchanged from 2011, then what change (increase or decrease) in COGS would be warranted.
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