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
ekkarill92 answered 1 year agoRelated 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...
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