What would happen if credit sales were 65 of total sales

Reference no: EM13588371

Perform a sensitivity analysis for beth davies, the president of global electronic company will perform a sensitivity analysis by changing assumptions and then observing the impact on your master budget schedules and financial statements. In each of the three independent cases that follow, you are to make the required changes in the data, observe the results, and explain them in your business memorandum.

Case 1: What would happen if credit sales were 65% of total sales, rather than 75% and inventory at end of each month equal to 40% of next month's projected cost of goods sold?

Case 2: What would happen if 15%, rather than 10%, of the credit sales are collected during the month of sale AND 50%, rather than 40%, of each month's purchases are paid during the month of purchase?

Case 3: What would happen if the equipment purchases required a $230,000 investment, rather than $250,000?

Reference no: EM13588371

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