Philip Morris expects the sales for his clothing company to be $540,000 next year. Philip notes...

Philip Morris expects the sales for his clothing company to be $540,000 next year. Philip notes that net assets (Assets − Liabilities) will remain unchanged. His clothing firm will enjoy a 11 percent return on total sales. He will start the year with $140,000 in the bank.

What will Philip's ending cash balance be?

Expert Solution

Answer

Expected Sales = 540000 $

Return on total sales = 11 %

Profit = 540000 * 11 %

= 59400 $

Net Assets remain unchanged that means there is no addition to these element.

Calculation of Closing Cash balance -

Opening Cash balance 140000 $

(+) Profit 59400 $

(-) Addition to asset (0) $

____________

Closing Cash balance 209400 $

ekkarill92 answered 2 years ago

CHAPTER 6 Sharpe Knife Company expects sales next year to be $1,650,000 if the economy is...

CHAPTER 6 Sharpe Knife Company expects sales next year to be $1,650,000 if the economy is strong, $875,000 if the economy is steady, and $650,000 if the economy is weak. Mr. Sharpe believes there is a 10 percent probability the economy will be strong, a 45 percent probability of a steady economy, and a 45 percent probability of a weak economy What is the expected level of sales for the next year? EXPECTED LEVEL OF SALES = Guardian Inc. is...

Getty Company expects sales for the first three months of next year to be $195,000, $265,000...

Getty Company expects sales for the first three months of next year to be $195,000, $265,000 and $315,000, respectively. Getty expects 50 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month. Compute a schedule of Getty’s cash receipts for the months of February and March.

Following the acquisition of Kraft during Year 8, the Philip Morris Companies released its Year 8...

Following the acquisition of Kraft during Year 8, the Philip Morris Companies released its Year 8 statement of cash flows (indirect method). PHILIP MORRIS COMPANIES, INC. Statement of Cash Flows For the Year Ended December 31, Year 8 ($ millions) Cash flows from operating activities Net income............................................................. $ 2,337 Add (deduct) adjustments to cash basis Depreciation expense........................................ 654 Amortization of goodwill.................................... 125 Decrease in accounts receivable....................... 601 Decrease in inventories........................................

Global Corp. expects sales to grow by 7 % next year. Using the percent of sales...

Global Corp. expects sales to grow by 7 % next year. Using the percent of sales method and the data provided in the given tables, forecast: a. Costs except depreciation b. Depreciation c. Net income d. Cash e. Accounts receivable f. Inventory g. Property, plant, and equipment h. Accounts payable (Note: Interest expense will not change with a change in sales. Tax rate is 26%.) Income Statement ($ million) Balance Sheet ($ million) Net Sales 185.4185.4 Assets Costs Except Depreciation...

James Company expects the following sales in the next few months: Month &nb

James Company expects the following sales in the next few months: Month Units Selling Price July 50,000 $ 8.10 August 80,000 $ 8.10 September 40,000 $ 8.60 October 30,000 $ 8.60 James expects to collect 60 % of sales in the month of sale, 30 % in the following month, 5 % in the next month, with 5 % remaining uncollected. Required: Prepare a schedule of cash receipts for September and October.

Jane Company expects the following sales in the next few months: Month &nbs

Jane Company expects the following sales in the next few months: Month Units Selling Price July 50,000 $ 8.10 August 80,000 $ 8.10 September 40,000 $ 8.60 October 30,000 $ 8.60 Jane expects to collect 60 % of sales in the month of sale, 30 % in the following month, 5 % in the next month, with 5 % remaining uncollected. Prepare a schedule of cash receipts for September and October.

Jim's expresso expects sales to grow by 9.9% next year. Using the following statements. and the...

Jim's expresso expects sales to grow by 9.9% next year. Using the following statements. and the percent of sales method, forecast: a. Costs b.Depreciation c. Net Income d. Cash e. Accounts Receivable f. Inventory g. Property, plant, and equipment Income Statement Sales . $194,890 Costs Except (99,240) EBITDA $95,650 Depreciation (5,940) EBIT $89,710 Interest Expense (net) (210) Pre-tax Income $89,500 Income Tax (31,325) Net Income $58,175 Balance Sheet Assets Cash and Equivalents $15,050 Accounts Receivable 1,980 Inventories 3,940 Total Currents...

Your firm expects to earn $647,800 after taxes next year. Sales will be $3,600,000 and fixed...

Your firm expects to earn $647,800 after taxes next year. Sales will be $3,600,000 and fixed costs will be $1,400,000. Interest expense will amount to $300,000. Your firm manufactures office machines, and expects to sell 9,000 units next year. Your firm has a 21% tax rate and the variable costs is $120 per unit. How many units would you have to sell to break even?

Eugen-Kay Construction Co. Ltd. expects credit sales of ¢24million in the next year and has budgeted...

Eugen-Kay Construction Co. Ltd. expects credit sales of ¢24million in the next year and has budgeted production costs as follows: ¢million Raw materials 4 Direct labour 5 Production overheads 3 Total production costs 12 Raw materials are in stock for an average of three weeks and finished goods are in stock for an average of four weeks. All raw materials are added at the start of the production cycle, which takes five weeks and incurs labour costs and production overheads...

Cancun Inc. expects to earn $150,000 next year after taxes on sales of $2,200,000. Cancun manufactures...

Cancun Inc. expects to earn $150,000 next year after taxes on sales of $2,200,000. Cancun manufactures only one size of garbage can. Cancun sells the products for $8 apiece and they have a variable cost of $2.40 apiece. The company's tax rate is currently 34%. 1.Distinguish among fixed costs, variable costs and semivariable costs. 2.What are the firm's expected fixed costs for next year? 3.What is the break-even point in units and in sales dollars?

Question