Question

In: Finance

Weston Distributions has current sales of $1,400,000, current liabilities of $186,000, and net working capital of...

Weston Distributions has current sales of $1,400,000, current liabilities of $186,000, and net working capital of $88,000. The projected sales for next year are $1,540,000. All net working capital accounts change directly with sales. What is the projected value of current assets for next year?

$292,600

$314,800

$273,200

$286,600

$301,400

Solutions

Expert Solution

Working Capital = Current Assets - Current Liabilities
88000= Current Assets-186000
Current Assets = $274000
Increase in sales in % = ($154000-1400000)/1400000
=10%
Current assets for next year = $274000*1.10
=$301400

Related Solutions

A catering firm has current liabilities of $6,630, net working capital of $2,180, inventory of $2,750,...
A catering firm has current liabilities of $6,630, net working capital of $2,180, inventory of $2,750, and sales of $36,800. What is the current ratio?
SDJ, Inc., has net working capital of $1,960, current liabilities of $5,590, and inventory of $1,260....
SDJ, Inc., has net working capital of $1,960, current liabilities of $5,590, and inventory of $1,260. A. what is the current ratio? B. what is the quick ratio?
1.      Holmes Inc. has a quick ratio of 0.70, current liabilities of $21,500, net working capital...
1.      Holmes Inc. has a quick ratio of 0.70, current liabilities of $21,500, net working capital of $1200, and sales of $14,500. How much does it have in inventory? 2.      Watson Co. has net income of $235,000, a return on assets of 12.5%, and a debt-equity ratio of 0.52. What is its return on equity? 3.      Lestrade Plc. has net income of $16,000 and a profit margin of 8%. It also had costs (including depreciation) of $154,000 and a tax...
Beakman, Inc has net working capital of $1,700, current liabilities of $4,100, and inventory of $2,900. What is the current ratio?
Beakman, Inc has net working capital of $1,700, current liabilities of $4,100, and inventory of $2,900. What is the current ratio? What is the quick ratio? (10 Points)(Use Excel and Excel Formulas)
SDJ, Inc., has net working capital of $1,965, current liabilities of $5,460, and inventory of $2,170. What is the current ratio? What is the quick ratio?
Calculating Liquidity Ratios SDJ, Inc., has net working capital of $1,965, current liabilities of $5,460, and inventory of $2,170. What is the current ratio? What is the quick ratio?Net Working Capital$      1,965.00Current Liabilities$      5,460.00Inventory$      2,170.00Current RatioQuick Ratio03.04 Calculating Inventory Turnover Bobaflex Corporation has ending inventory of $527,156 and cost of goods sold for the year just ended was $8,543,132. What is the inventory turnover? The days’ sales in inventory? How long on average did a unit of inventory sit on...
The Nelson Company has $1,400,000 in current assets and $500,000 in current liabilities. Its initial inventory...
The Nelson Company has $1,400,000 in current assets and $500,000 in current liabilities. Its initial inventory level is $400,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.4? Round your answer to the nearest cent. What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Round your answer to two decimal...
A company in NY has net working capital of $8,000 and current assets of $12,000. Total...
A company in NY has net working capital of $8,000 and current assets of $12,000. Total assets equal $30,000. What is the book value of the equities for the firm if long-term debt is $7,500?
A company has net working capital of $3,270, current assets of $8,620, equity of $25,880, and...
A company has net working capital of $3,270, current assets of $8,620, equity of $25,880, and long-term debt of $13,680. What is the company's net fixed assets? Group of answer choices $25,570 $35,340 $42,830 $36,290 $27,590
If a company has had net working capital levels of approximately 12% of sales over the...
If a company has had net working capital levels of approximately 12% of sales over the past five years, it can be reasonably estimated that the company will continue to require that level of working capital to support future sales. Therefore, it may be appropriate to add any working capital amount in excess of 12% of sales as of the valuation date to the determined company value as excess working capital (essentially a non-operating asset). A related adjustment may be...
A firm has net working capital of $8,000 and current assets of $12,000. Total assets equal...
A firm has net working capital of $8,000 and current assets of $12,000. Total assets equal $30,000. What is the book value of the equities for the firm if long-term debt is $7,500? $18,500 $14,500 $10,500 $18,900
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT