Question
In: Finance
Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below....
Projected Operating Assets
Berman & Jaccor Corporation's current sales and partial balance sheet are shown below.
| This year | ||||
| Sales | $ | 1,000 | ||
| Balance Sheet: Assets | ||||
| Cash | $ | 150 | ||
| Short-term investments | $ | 115 | ||
| Accounts receivable | $ | 150 | ||
| Inventories | $ | 250 | ||
| Total current assets | $ | 665 | ||
| Net fixed assets | $ | 600 | ||
| Total assets | $ | 1,265 | ||
Sales are expected to grow by 14% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
Solutions
Expert Solution
Operating assets are cash, accounts receivable, inventories and net fixed assets.
Total Operating assets =$(150+150+250+600) =$1,150
There are 2 ways to calculate the projected total operating assets.
1.Projected total operating assets
=(100%+ Increase in sales%)*(Operating assets)
=(100% +14%)* 1,150
=$1,311
2. First we calculate ratio of each operating assets of last year to last year's sales.
Operating asset Ratio = Operating asset/ sales
Cash = $150/$1,000 = 0.15
Accounts receivable = $150/$1,000 = 0.15
Inventories = $250/$1,000 = 0.25
Net fixed assets = $600/$1,000 = 0.60
Next year's sales = current sales*(1+growth rate)
= $1,000*(1 +0.14) = $1,140
Project cash next year = project sales*cash to sales ratio = $1,140*0.15 = $171
Project accounts receivable = $1,140*0.15 = $171
Projected inventories = $1,140*0.25 = $285
Projected Net fixed assets = $1,140*0.60 = $684
Projected total operating assets =
= $(171 + 171+ 285 + 684)
= $1,311
jeff jeffy answered 1 year agoRelated Solutions
Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below....
Projected Operating Assets Berman & Jaccor Corporation's
current sales and partial balance sheet are shown below.
This year
Sales $ 1,000
Balance Sheet: Assets
Cash $ 150
Short-term investments $ 70
Accounts receivable $ 250
Inventories $ 200
Total current assets $ 670
Net fixed assets $ 450
Total assets $ 1,120
Sales are expected to grow by 12% next year. Assuming no change
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Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below....
Projected Operating Assets
Berman & Jaccor Corporation's current sales and partial
balance sheet are shown below.
This year
Sales
$
1,000
Balance Sheet: Assets
Cash
$
100
Short-term investments
$
95
Accounts receivable
$
250
Inventories
$
300
Total current assets
$
745
Net fixed assets
$
450
Total assets
$
1,195
Sales are expected to grow by 10% next year. Assuming no change
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current sales and partial balance sheet are shown below. This year
Sales $ 1,000 Balance Sheet: Assets Cash $ 200 Short-term
investments $ 140 Accounts receivable $ 100 Inventories $ 250 Total
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Sales are expected to grow by 10% next year. Assuming no change in
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Explanation
Berman & Jaccor Corporation's current sales and partial
balance sheet are shown below.
This year
Sales
$
1,000
Balance Sheet: Assets
Cash
$
100
Short-term investments
$
70
Accounts receivable
$
200
Inventories
$
200
Total current assets
$
570
Net fixed assets
$
450
Total assets
$
1,020
Sales are expected to grow by 12% next year. Assuming no change
in operations from this year to next year, what are the projected
total operating...
Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales...
Berman & Jaccor Corporation's current sales and partial
balance sheet are shown below.
This year
Sales
$
1,000
Balance Sheet: Assets
Cash
$
200
Short-term investments
$
140
Accounts receivable
$
100
Inventories
$
150
Total current assets
$
590
Net fixed assets
$
400
Total assets
$
990
Sales are expected to grow by 12% next year. Assuming no change
in operations from this year to next year, what are the projected
total operating assets? Do not round intermediate...
Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year $1,000...
Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales$1,000Balance Sheet: Assets Cash$ 150 Short-term investments $ 145Accounts receivable $ 300Inventories $ 300Total current assets $ 895Net fixed assets $ 600Total assets $ 1,495 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
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Accounts payable $ 1,500 Notes payable $ 3,000 Accruals $ 2,000
Total current liabilities $ 6,500 Long-term bonds $ 2,000 Total
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Method Victor Corporation's comparative balance sheet for current
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Dec. 31, Year 2
Dec. 31, Year 1
Accounts receivable
$20,000
$16,700
Inventory
70,000
78,700
Accounts payable
7,700
9,400
Dividends payable
27,000
25,000
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and liabilities to arrive at net cash flow from operating
activities.
b)
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Staley Inc. reported the following data:
Net income
$284,400
Depreciation expense
67,900
Loss...
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Method
Covington Corporation's comparative balance sheet for current
assets and liabilities was as follows:
Dec. 31, Year 2
Dec. 31, Year 1
Accounts receivable
$12,200
$15,500
Inventory
77,400
67,300
Accounts payable
18,000
21,400
Dividends payable
21,000
20,000
Adjust net income of $92,700 for changes in operating assets and
liabilities to arrive at net cash flow from operating
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Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$
31,000
$
28,000
Accounts receivable
18,000
20,000
Inventory
58,000
56,000
Prepaid expenses
12,000
10,000
Total current assets
119,000
114,000
Property, plant, and equipment
374,000
354,000
Less accumulated depreciation
190,000
165,000
Net property, plant, and equipment
184,000
189,000
Total assets
$
303,000
$
303,000
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable
$
13,000
$
9,000
Accrued liabilities
52,000...
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