Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Lapps Inc. makes a gift product that sells best during the holiday season. Retailers stock up in the fall so Lapps's sales are largest in October and November and drop dramatically in December. The firm expects the following revenue pattern for the second half of this year ($000). The third quarter figures are actual results, while the fourth quarter is a projection.
Jul
Aug
Sep
Oct
Nov
Dec
Revenue
$5,500
$6,000
$7,500
$8,000
$9,500
$4,000
Historically, Lapps collects its receivables according to the following pattern.
Months after sale
1
2
3
% collected
60%
30%
9%
The firm offers a 2% prompt payment discount, which is taken by about half of the customers that pay in the first month.
Lapps receives inventory one month in advance of sales. The cost of material is 40% of revenue. Invoices are paid 45 days after receipt of material.
The firm uses temporary labor to meet its seasonal production needs, so payroll can be estimated at 35% of the current month's sales. Other expenses are a constant $1.8 million per month. A $.7 million tax payment is scheduled for November, and an expansion project will require cash of $.5 million in October and $.8 million in December. Lapps has a $6 million short-term loan outstanding at the end of September. Monthly interest is 1% of the previous month-end balance.
Prepare Lapps's cash budget for the fourth quarter.
Why we think the capital from retained earnings is not free? When we compute the cost of this type of capital, the influence of taxation is considered or not? Explain.
at the end of last year roberts inc. reported the following income statement in millions of dollarssales 3000operating
The Corporation is planning two different capital structures. Plan 1 would result in 2,000 shares of stock and $40,000 in debt and plan 2 would result in 4,000 shares of stock and $20,000 in debt. The interest rate is 10%.
Firm A has $10,000 in assets entirely financed with equity. Firm B also has $10,000 in assets, but these assets are financed by $5,000 in debt (with a 10 percent rate of interest) and $5,000 in equity. What is the operating income (EBIT) for both f..
The market and Stock J have the following probability distributions: a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock J. c. Calculate the coefficients of variation for..
Explain What is the reasonable cost of capital for average and high and low risk projects Suppose a firm estimates its WACC to be 10 %.
Suggest a real-life example of how an annuity can be used in someone's financial portfolio to balance their investments.
Riordan Inc. has a bond that has a $1,000 par value, semiannual coupon rate of 4% and a current yield of 7.9%. What is the price of the bond?
Use your module readings, the online library resources, and the Internet to research the arguments for and against free trade. Then, respond to the following:
what are three potential flaws with the regular payback method? does the discounted payback method correct all three
Assuming a stock price and volume chart that also contains a 50-day and a 200-day MA line, describe a bearish pattern with the two MA lines and discuss why it is bearish.
Develop the profit-and-lost statement if net sales were $20 million last year.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd