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?

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		$	75
Accounts receivable		$	300
Inventories		$	150
Total current assets		$	625
Net fixed assets		$	400
Total assets		$	1,025

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.

Solutions

Expert Solution

Projected total operating assets:

= ($100+$300+$150+$400)×(1+12%)

= $950×1.12

= $1,064

Hence, Projected operating assets are $1,064

jeff jeffy answered 1 year ago

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