Question

In: Accounting

Loki Labs is experience rapid growth due the increased demand for dog treat products that are...

Loki Labs is experience rapid growth due the increased demand for dog treat products that are low in calories and high in nutrition. Current sales of $125,000, which increased from $90,000 the previous month, are expected to grow at a 25 percent rate. Costs of sales are stable at 75% of sales revenue. Loki's sales are for 30 percent cash with the remaining 70 percent collected the following month. Inventory-on-hand is maintained at a level to support the following month's sales. Inventory is paid in full at the time of receipt. Loki's cash balance at the start of the period was $75,000.
A. For the current month and the following three months, determine Loki's
Revenue
Inventory
Cost of sales
Accounts receivable
Cash collections
Cash disbursements

B. Is Loki's gross profit increasing or declining?

C. Is Loki's cash flow increasing or declining?

D. What is Loki's cash balance at the end of the four-month period?

Solutions

Expert Solution

Answer with working is given below


Related Solutions

Loki Labs is experience rapid growth due the increased demand for dog treat products that are...
Loki Labs is experience rapid growth due the increased demand for dog treat products that are low in calories and high in nutrition. Current sales of $125,000, which increased from $90,000 the previous month, are expected to grow at a 25 percent rate. Costs of sales are stable at 75% of sales revenue. Loki's sales are for 30 percent cash with the remaining 70 percent collected the following month. Inventory-on-hand is maintained at a level to support the following month's...
Cash Flow Budgeting - Company A is experiencing rapid growth due to the popularity of its...
Cash Flow Budgeting - Company A is experiencing rapid growth due to the popularity of its recent hardware release. Current sales of $100,000, which increased from $80,000 the previous month, are expected to grow at a 30% rate. Cost of sales are stable 70% of sales revene, yielding a 30% gross profit. Company A sales are 15% for cash with the remaining 85% collected the following month. Inventory-on-hand is maintained at a level to support the following month's sales. Inventory...
If the price of kale increases by 2% during the year due to increased demand and...
If the price of kale increases by 2% during the year due to increased demand and the average price level increases by 4% only, then it can said that, The relative price of kale increased compared to other goods and people selling kale would be worse off. The relative price of kale increased compared to other goods and people selling kale would be better off. The relative price of kale decreased compared to other goods and people selling kale would...
Assume that due to an increase in demand, the average domestic airline fare increased from $319.85...
Assume that due to an increase in demand, the average domestic airline fare increased from $319.85 in the fourth quarter of 2013 to $328.12 in the first quarter of 2014, an increase of $8.27. The number of passenger tickets sold in the fourth quarter of 2013 was 151.4 million. Over the same period, the airlines’ costs remained roughly the same: the price of jet fuel averaged around $2 per gallon in both quarters, and airline pilots’ salaries remained roughly the...
Due to COVID-19 the demand for bath tissue papers and paper towels increased by Canadian citizen....
Due to COVID-19 the demand for bath tissue papers and paper towels increased by Canadian citizen. It has increased the Canadian Aggregate demand. True or False
In June 2021, the demand for COVID testing increased exponentially due to a pick in the third wave of the Corona virus disease
In June 2021, the demand for COVID testing increased exponentially due to a pick in the third wave of the Corona virus disease. The government has put out an offer to subsidy testing at private clinics and hospitals to make access to testing more accessible and to lessen the burden on state resources. The subsidy will only be provided to certain medical practices.Fortunately, the chair of the board, who is also the CEO and a CA(NAM) at a local private...
All products have different price demand elasticities. For example, many food items have elastic demand due...
All products have different price demand elasticities. For example, many food items have elastic demand due to the substitutes available. Select a good or service (NOTE: Do not pick a class of goods but a specific good) that has not already been selected by another student and describe in three separate short paragraphs: First paragraph: The good's or services' price demand elasticity and income elasticity. Discuss which of the elasticity rules you used to determine your answer. Note - do...
Upon what does the future growth of demand for U.S. agricultural products seem mainly to depend?...
Upon what does the future growth of demand for U.S. agricultural products seem mainly to depend? What are the problems in this?
Sarasota Sporting Goods Inc. has been experiencing growth in the demand for its products over the...
Sarasota Sporting Goods Inc. has been experiencing growth in the demand for its products over the last several years. The last two Olympic Games greatly increased the popularity of basketball around the world. As a result, a European sports retailing consortium entered into an agreement with Sarasota’s Roundball Division to purchase basketballs and other accessories on an increasing basis over the next 5 years. To be able to meet the quantity commitments of this agreement, Sarasota had to obtain additional...
Sarasota Sporting Goods Inc. has been experiencing growth in the demand for its products over the...
Sarasota Sporting Goods Inc. has been experiencing growth in the demand for its products over the last several years. The last two Olympic Games greatly increased the popularity of basketball around the world. As a result, a European sports retailing consortium entered into an agreement with Sarasota’s Roundball Division to purchase basketballs and other accessories on an increasing basis over the next 5 years. To be able to meet the quantity commitments of this agreement, Sarasota had to obtain additional...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT