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 $ 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 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

Total Operating assets = Cash + Accounts receivable + Inventories + Net fixed assets

  • Short term investments are included in Non operating assets.

We will first calculate ratio of each operating asset to sales

Cash/sale = 100/1000 = 0.1

Accounts receivables/sale = 250/1000 = 0.25

Inventory/sales = 300/1000 = 0.30

Net fixed asset/Sale = 450/1000 = 0.45

Growth rate = 10%

Next year sale = 1000 * 1.1 = 1100

Operating assets next year,

Cash = 0.1 * 1100 = 110

Accounts receivable = 0.25 * 1100 = 275

Inventory = 0.30 * 1100 = 330

Fixed assets = 0.45 * 1100 = 495

Projected total operating assets = 110 + 275 + 330 + 495 = $1,210

We can also calculate it by multiplying total operating cost * growth rate = 1100 * 1.1 = 1210

Hence the total operating cost for next year is $1,210.

If you have any doubts please let me know in the comments. Please give a positive rating if the answer is helpful to you. Thanks.

jeff jeffy answered 1 year ago
Next > < Previous

Related 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 in operations from this year to next year, what are the projected total operating assets? Do...
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...
Projected Operating Assets Berman & Jaccor Corporation'scurrent 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 $ 200 Short-term investments $ 140 Accounts receivable $ 100 Inventories $ 250 Total current assets $ 690 Net fixed assets $ 450 Total assets $ 1,140 Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do...
Projected Operating Assets Formula Explanation Berman & Jaccor Corporation's current sales and partial balance sheet are...
Projected Operating Assets Formula 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.
Smiley Corporation's current sales and partial balance sheet areshown below. This year Sales $ 10,000...
Smiley Corporation's current sales and partial balance sheet are shown below. This year Sales $ 10,000 Balance Sheet: Liabilities Accounts payable $ 1,500 Notes payable $ 3,000 Accruals $ 2,000 Total current liabilities $ 6,500 Long-term bonds $ 2,000 Total liabilities $ 8,500 Common stock $ 1,000 Retained earnings $ 2,500 Total common equity $ 3,500 Total liabilities & equity $ 12,000 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to...
Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets...
Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: 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 Adjust net income of $111,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. b) ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Staley Inc. reported the following data: Net income $284,400 Depreciation expense 67,900 Loss...
Changes in Current Operating Assets and Liabilities—Indirect Method Covington Corporation's comparative balance sheet for current assets...
Changes in Current Operating Assets and Liabilities—Indirect 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 activities.
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current...
Krech Corporation's comparative balance sheet appears below: 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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT