Question
In: Accounting
Input Data Month 0 1 2 3 4 5 6 7 8 9 10 11 12...
| Input Data | |||||||||||||||||||||||||
| Month | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |
| Revenue | $ - | $ - | $ - | $ - | $ - | $ - | $ 2,500 | $ 2,875 | $ 3,306 | $ 3,802 | $ 4,373 | $ 5,028 | $ 5,783 | $ 6,650 | $ 7,648 | $ 8,795 | $ 10,114 | $ 11,631 | $ 13,376 | $ 15,382 | $ 17,689 | $ 20,343 | $ 23,394 | $ 26,903 | |
| Monthly Revenue Growth Rate | 0% | 0% | 0% | 0% | 0% | 0% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | |
| Terms of Revenue | |||||||||||||||||||||||||
| Cash Sales (% of revenue) | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | |
| N30 (% of revenue) | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | |
| N60 (% of revenue) | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |
| Cost of Good Sold | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | 8% | |
| Terms of Cost of Goods Sold | |||||||||||||||||||||||||
| Cash Sales (% of purchases) | 0% | 0% | 0% | 0% | 0% | 0% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | 70% | |
| N30 (% of purchases) | 0% | 0% | 0% | 0% | 0% | 0% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | 30% | |
| N60 (% of purchases) | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |
| Cash Operating Costs | |||||||||||||||||||||||||
| Compensation | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |
| Rent | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | |
| Supplies | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | |
| Other Operating Expences | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% | |
| Accounting | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $115 | $132 | $152 | $175 | $201 | $231 | $266 | $306 | $352 | $405 | $465 | $535 | $615 | $708 | $814 | $936 | $1,076 | |
| Advertizing | $350 | 350 | 350 | 350 | 350 | 350 | 403 | 463 | 532 | 612 | 704 | 810 | 931 | 1071 | 1231 | 1416 | 1628 | 1873 | 2153 | 2476 | 2848 | 3275 | 3766 | 4331 | |
| Tax Rate | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |
| Income Statement | |||||||||||||||||||||||||
| Month | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |
| Revenue | $0 | $0 | $0 | $0 | $0 | $0 | $2,500 | $2,875 | $3,306 | $3,802 | $4,373 | $5,028 | $5,783 | $6,650 | $7,648 | $8,795 | $10,114 | $11,631 | $13,376 | $15,382 | $17,689 | $20,343 | $23,394 | $26,903 | |
| Cost of Goods Sold | $0 | $0 | $0 | $0 | $0 | $0 | $200 | $230 | $265 | $304 | $350 | $402 | $463 | $532 | $612 | $704 | $809 | $930 | $1,070 | $1,231 | $1,415 | $1,627 | $1,872 | $2,152 | |
| Gross Profit | $0 | $0 | $0 | $0 | $0 | $0 | $2,300 | $2,645 | $3,042 | $3,498 | $4,023 | $4,626 | $5,320 | $6,118 | $7,036 | $8,091 | $9,305 | $10,701 | $12,306 | $14,151 | $16,274 | $18,715 | $21,523 | $24,751 | |
| Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Rent | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | |
| Supplies | 0 | 0 | 0 | 0 | 0 | 0 | 250 | 288 | 331 | 380 | 437 | 503 | 578 | 665 | 765 | 879 | 1,011 | 1,163 | 1,338 | 1,538 | 1,769 | 2,034 | 2,339 | 2,690 | |
| Other operating Expences | 0 | 0 | 0 | 0 | 0 | 0 | 375 | 431 | 496 | 570 | 656 | 754 | 867 | 998 | 1,147 | 1,319 | 1,517 | 1,745 | 2,006 | 2,307 | 2,653 | 3,051 | 3,509 | 4,035 | |
| Accounting | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | |
| Advertizing | 350 | 350 | 350 | 350 | 350 | 350 | 403 | 463 | 532 | 612 | 704 | 810 | 931 | 1,071 | 1,231 | 1,416 | 1,628 | 1,873 | 2,153 | 2,476 | 2,848 | 3,275 | 3,766 | 4,331 | |
| Earnings Before Taxes | -$650 | -$650 | -$650 | -$650 | -$650 | -$650 | $973 | $1,163 | $1,383 | $1,635 | $1,926 | $2,259 | $2,643 | $3,085 | $3,593 | $4,176 | $4,848 | $5,620 | $6,508 | $7,529 | $8,704 | $10,054 | $11,608 | $13,394 | |
| Taxes | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Income | -$650 | -$650 | -$650 | -$650 | -$650 | -$650 | $973 | $1,163 | $1,383 | $1,635 | $1,926 | $2,259 | $2,643 | $3,085 | $3,593 | $4,176 | $4,848 | $5,620 | $6,508 | $7,529 | $8,704 | $10,054 | $11,608 | $13,394 | |
| Cash Flow | |||||||||||||||||||||||||
| Cash Collected from Revenue | $0 | $0 | $0 | $0 | $0 | $0 | $1,750 | $2,763 | $3,177 | $3,653 | $4,201 | $4,832 | $5,556 | $6,390 | $7,348 | $8,451 | $9,718 | $11,176 | $12,852 | $14,780 | $16,997 | $19,547 | $22,479 | $25,850 | |
| Cash Payments on COGS | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $200 | $230 | $265 | $304 | $350 | $402 | $463 | $532 | $612 | $704 | $809 | $930 | $1,070 | $1,231 | $1,415 | $1,627 | $1,872 | |
| Cash Operating Expenses ETC | $650 | $650 | $650 | $650 | $650 | $650 | $1,328 | $1,482 | $1,659 | $1,863 | $2,097 | $2,367 | $2,677 | $3,033 | $3,443 | $3,915 | $4,457 | $5,080 | $5,797 | $6,622 | $7,570 | $8,661 | $9,915 | $11,357 | |
| Taxes | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Net Cash Flow | -$650 | -$1,301 | -$1,951 | -$2,601 | -$3,251 | -$3,902 | -$3,479 | -$2,398 | -$1,110 | $416 | $2,216 | $4,331 | $6,809 | $9,703 | $3,373 | $3,924 | $4,558 | $5,286 | $6,124 | $7,088 | $8,196 | $9,471 | $10,936 | $12,622 | |
| Cash Account Balance | $3,000 | $2,350 | $1,049 | -$902 | -$3,503 | -$6,754 | -$10,655 | -$14,134 | -$16,532 | -$17,642 | -$17,226 | -$15,010 | -$10,679 | -$3,870 | $5,833 | $9,206 | $13,130 | $17,688 | $22,974 | $29,099 | $36,187 | $44,383 | $53,854 | $64,790 | $77,412 |
Compute, if possible, how much revenue would be needed to breakeven in terms of cash flow. Comment on the financial viability of the venture. Would you suggest any changes? If so, what are they? If you do, this becomes your ‘base’ model.
Solutions
Expert Solution
Hi,
Kindly see below calculations, where Company Need to a revenue of $7,769 in the 25th Month to Breakeven inflow and Outflow.
Kindly Note Breakeven for sales will always change in every month as we are providing credit sales with the terms 30 days. So last month Credit sales revenue will be collected this month.
The venture is financial viable as Gross margin is high, with the increase in Sales , Inflow of cash is also increasing covering all fixed cost.
| Month | 25 |
| Revenue | $7,769 |
| Monthly Revenue Growth Rate | 15% |
| Terms of Revenue | |
| Cash Sales (% of revenue) | 70% |
| N30 (% of revenue) | 30% |
| N60 (% of revenue) | 0 |
| Cost of Good Sold | 8% |
| Terms of Cost of Goods Sold | |
| Cash Sales (% of purchases) | 70% |
| N30 (% of purchases) | 30% |
| N60 (% of purchases) | 0 |
| Cash Operating Costs | |
| Compensation | 0 |
| Rent | $200 |
| Supplies | 10% |
| Other Operating Expences | 15% |
| Accounting | $1,076 |
| Advertizing | $4,331 |
| Tax Rate | 0% |
| Income Statement | |
| Month | 25 |
| Revenue | $7,769 |
| Cost of Goods Sold | $621.52 |
| Gross Profit | $7,147.48 |
| Compensation | 0 |
| Rent | $200 |
| Supplies | $776.9 |
| Other operating Expences | $1,165.35 |
| Accounting | $100 |
| Advertizing | $4,980.535 |
| Earnings Before Taxes | $13,394 |
| Taxes | 0 |
| Net Income | $13,394 |
| Cash Flow | |
| Cash Collected from Revenue | $13,509 |
| Cash Payments on COGS | $2,152 |
| Cash Operating Expenses ETC | $11,357 |
| Taxes | 0 |
| Net Cash Flow | 0 |
ekkarill92 answered 1 year agoRelated Solutions
Input Data Month 0 1 2 3 4 5 6 7 8 9 10 11 12...
Input Data
Month
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Revenue
$
-
$
-
$
-
$ -
$ -
$
-
$ 2,500
$ 2,875
$ 3,306
$ 3,802
$ 4,373
$ 5,028
$ 5,783
$ 6,650
$ 7,648
$ 8,795
$ 10,114
$ 11,631
$ 13,376
$ 15,382
$ 17,689
$ 20,343
$ 23,394
$ 26,903
Monthly Revenue Growth...
3 6 4 8 1 10 2 9 11 12 15 22 3 6 7 5...
3
6
4
8
1
10
2
9
11
12
15
22
3
6
7
5
8
1
12
14
Each column represents a different treatment given to sick rats.
Each cell is a different rat. Use statistical analysis and use post
hoc testing using contrasts to find the best
treatment.
Treatment 1: vitamins
Treatment 2: prescription pills
Treatment 3: brain surgery
Treatment 4: shock therapy
Treatment 5: dietary changes
Match No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14...
Match No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Player A
8
42
56
68
91
123
12
46
57
137
5
80
14
10
19
Player B
38
44
46
59
57
61
48
42
51
39
58
41
55
45
68
1. For the given data set representing the runs scored by two
players in last 15 matches, conduct the following analysis:
i. Which average you will use to summarize...
Period 0 1 2 3 4 5 6 7 8 9 10 11 PBP NPV IRR...
Period
0
1
2
3
4
5
6
7
8
9
10
11
PBP
NPV
IRR
Project A
$
(1,000,000)
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 400,000
Project B
$
(1,000,000)
$ 500,000
$ 500,000
$ 500,000
Project C
$
(80,000)
$ 1,040
$ 9,456
$ 11,405
$ 18,567
$ 47,453
$ 6,394
$ 45,727
$ 51,933
$ 85,625
Project D
$
(400,000)
$ 4,161...
Period 0 1 2 3 4 5 6 7 8 9 10 11 PBP NPV IRR...
Period
0
1
2
3
4
5
6
7
8
9
10
11
PBP
NPV
IRR
Project A
$
(1,000,000)
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 200,000
$ 400,000
Project B
$
(1,000,000)
$ 500,000
$ 500,000
$ 500,000
Project C
$
(80,000)
$ 1,040
$ 9,456
$ 11,405
$ 18,567
$ 47,453
$ 6,394
$ 45,727
$ 51,933
$ 85,625
Project D
$
(400,000)
$ 4,161...
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15...
Day
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Number of Aides Absent
5
8
11
15
4
2
7
1
4
6
14
19
3
5
8
In which of the following ranges you can find the Upper Control
Limit of the control chart?
0.1427
0.1536
0.1677
Not computable with information available
In which of the following ranges you can find the Lower Control
Limit of the control chart?
Does not exit...
student 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15...
student
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Test score
67
67
87
89
87
77
73
74
68
72
58
98
98
70
77
Above we have the final averages of the last stats and I want to
know if the class average falls within the boundaries of all my
statistics classes for the past 20 years.
Find the sample size, mean, and standard deviation of the data
above (Table 1)....
Company ID 1 2 3 4 5 6 7 8 9 10 11 12 13 14...
Company ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
1
5330
6352
6340
3399
6566
7376
6882
1842
7362
8205
6222
7695
1681
2283
2
7972
5941
2861
3290
1019
7399
6442
8003
5092
4634
7569
2538
2619
7932
3
8545
6667
2121
2339
4770
7296
3215
7919
2176
9129
1321
695
7945
1673
4
4578
466
4142
8350
7439
6085
8381
5872
2703
6974
702
5846
7176
9179
5
7302
2727
3103...
A = （1 −7 5 0 0 10 8 2 2 4 10 3 −4 8...
A =
（1 −7 5 0
0 10 8 2
2 4 10 3
−4 8 −9 6）
(1) Count the number of rows that contain negative
components.
(2) Obtain the inverse of A and count the number of columns that
contain even number of positive components.
(3) Assign column names (a,b,c,d) to the columns of A.
(4) Transform the matrix A into a vector object a by stacking
rows.
(5) Replace the diagonal components of A with (0,0,2,3). Hint:...
5.) For the data set 2 4 4 5 7 8 9 10 12 12 13...
5.) For the data set
2
4
4
5
7
8
9
10
12
12
13
13
16
16
16
16
17
19
19
20
23
24
24
24
25
26
26
27
28
28
29
31
32
34
34
36
37
38
42
44
45
46
47
47
48
50
52
53
53
54
55
56
56
57
58
(a) Find the 80th percentile.
The 80t percentile is =
(a) Find the 42nd percentile.
The 42nd percentile is...
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