CourseLover

(12)

$10/per page/Negotiable

About CourseLover

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Engineering,Health & Medical,HR Management,Law,Marketing,Math,Physics,Psychology,Programming,Science Hide all
Teaching Since: May 2017
Last Sign in: 283 Weeks Ago, 1 Day Ago
Questions Answered: 27237
Tutorials Posted: 27372

Education

  • MCS,MBA(IT), Pursuing PHD
    Devry University
    Sep-2004 - Aug-2010

Experience

  • Assistant Financial Analyst
    NatSteel Holdings Pte Ltd
    Aug-2007 - Jul-2017

Category > Management Posted 19 Dec 2017 My Price 10.00

Comment on the cash-flow impacts.

I will do my scholary work but will you make a brief comment about those to get me going on your opinion I have also attached my speadsheet to reflect the changes that you previoulsy recommended 

a. Mr. Wayne thinks that the gross margin may shrink to 27.5 percent because of higher purchase prices. He is concerned about what impact this will have on borrowings. Comment.

b. Mr. Chester thinks that "stock outs" occur too frequently and wants to see the impact of increasing inventory levels to 30 and 40 percent of next quarter's sales on their total investment. Comment on these changes.

c. Mr. Wayne wants to discontinue the cash discount for prompt payment. He thinks that maybe collections of an additional 20 percent of sales will be delayed from the month of billing to the next month. Mr. Chester says "That's ridiculous! We should increase the discount to 3 percent. Twenty percent more would be collected in the current month to get the higher discount." Comment on the cash-flow impacts.

StarTng date 8/31/2016 9/30/2016 10/31/2016 11/30/2016 Sales $ 750,000.00 $ 787,500.00 $ 826,800.00 $ 868,200.00 Cost of Goods Sold $ 525,000.00 $ 551,250.00 $ 578,760.00 $ 607,740.00 Gross ProFt $ 225,000.00 $ 236,250.00 $ 248,040.00 $ 260,460.00 Accounts Receivable CollecTon 8/31/2016 9/30/2016 10/31/2016 11/30/2016 Net 10 Discount (40% pay) $ 294,000.00 $ 308,700.00 $ 324,105.60 Receivables No Discount $ 187,500.00 $ 196,875.00 $ 206,700.00 Recievables 30 days 0 $ 225,000.00 $ 236,250.00 Cash CollecTons $ 481,500.00 $ 730,575.00 $ 767,055.60 Expenses 8/31/2016 9/30/2016 10/31/2016 11/30/2016 Sellind and Admin $ 107,500.00 $ 109,375.00 $ 111,340.00 $ 113,410.00 AdverTsing Expense $ 22,500.00 $ 23,625.00 $ 24,804.00 $ 26,046.00 Cash Payments Same Month $ 64,500.00 $ 65,625.00 $ 66,804.00 $ 68,046.00 Cash Payment ±ollowing Month $ 14,300.00 $ 43,750.00 $ 44,536.00 $ 45,364.00 Cash Pay AdverTsing Net 30 $ 13,500.00 $ 14,175.00 $ 14,882.40 $ 15,627.60 Cash Pay AdverTsing Net 60 $ 9,000.00 $ 9,450.00 $ 9,921.60 $ 10,418.40 Suppliers Payables 8/31/2016 9/30/2016 10/31/2016 11/30/2016 Beginning inventory $ 150,388.00 $ 137,812.50 $ 144,690.00 $ 151,935.00 Ending Inventory $ 137,812.50 $ 144,690.00 $ 151,935.00 $ 159,530.00 ²otal Purchases $ 512,424.50 $ 558,127.50 $ 586,005.00 $ 615,335.00 Cash Pay net 30 $ 307,454.70 $ 334,876.50 $ 351,603.00 $ 369,201.00 Cash Pay net 60 $ 204,969.80 $ 223,251.00 $ 234,402.00 $ 246,134.00 Rent (Income Received) $ 24,000.00 Equipment $ (250,000.00) Dividends Cash Budget 8/31/2016 9/30/2016 10/31/2016 11/30/2016 Opening Balance $ 142,100.00 $ 120,000.00 Cash CollecTon $ 730,575.00 $ 767,055.60 Suppliers Payables $(574,854.00) $ (603,603.00) Admin and Selling Payables $(110,554.00) $ (112,582.00) AdverTsing Payables $ (24,332.40) $ (25,549.20)
Background image of page 1

Attachments:

Answers

CourseLover
(12)
Status NEW Posted 19 Dec 2017 06:12 AM My Price 10.00

-----------  ----------- H-----------ell-----------o S-----------ir/-----------Mad-----------am ----------- Th-----------ank----------- yo-----------u f-----------or -----------usi-----------ng -----------our----------- we-----------bsi-----------te -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------ns.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age-----------

Not Rated(0)