Question

In: Accounting

1- Suppose receipts of $20,000 are moved from March to April. (March receipts are now planned...

1- Suppose receipts of $20,000 are moved from March to April. (March receipts are now planned at $94,999 while April receipts are planned at $110,210.)

- What change would this have on the total season’s receipt plan?

- What change would this have on the total season’s average stock and turnover?

Solutions

Expert Solution

there can be two assumptions in this case.

1) season ends with March

2) season does not end with March and both April and March falls in the same season

In case of 1st assumption total March season's receipts will fall short of $20000and total of April sesason' s receipts will go up by $20000.  

In case of 2nd  assumption there will be no change on the total season's receipt plan as  total receipts of March and April falls in the same season.

If we assume business is on cash and carry basis there will be no change on  total season's average stock and turnover in case of both assumptions

If business is on credit basis then in case of first assumption average stock will go down and turnover will be inflated for March season and opposite for April season

If business is on credit basis then in case of 2nd assumption there will be no change in average stock and turnover .


Related Solutions

March 17-April 1 -2.05 March 18 - April 2 -2.0 March 19 - April 4 -2.02...
March 17-April 1 -2.05 March 18 - April 2 -2.0 March 19 - April 4 -2.02 March 20 - April 5 -2.03 March 22 - April 6 -1.77 March 24 - April 10 -1.41 March 25 - April 12 -1.6 March 27 - April 13 -1.38 March 28 - April 15 -1.38 March 30 - April 16 -1.16 Mean = -1.68 Standard Deviation = 0.34 Do the following. d) For each country test at 5% level if the mean for...
Suppose that you can buy a car now for $20,000. On the otherhand, you can...
Suppose that you can buy a car now for $20,000. On the other hand, you can lease it at $350 per month for 60 months. If you buy a car now, then you will be able to sell it at the end of the fifth year for $8,000. If you choose to lease, what is the monthly and annual IRR of the lease compared to the buying a car now?
Month Cash disbursement Cash receipts January 100,000 100,000 February 110,000 90,000 March 110,000 80,000 April 150,000...
Month Cash disbursement Cash receipts January 100,000 100,000 February 110,000 90,000 March 110,000 80,000 April 150,000 100,000 May 180,000 120,000 June 180,000 160,000 July 180,000 200,000 August 180,00 250,000 September 150,000 250,000 October 110,000 200,000 November 100,000 140,000 December 100,000 100,000 Below table shows the monthly estimates of cash disbursement and receipts from January to December 2019 for preparing the cash budgets for Bintang Sdn Bhd. Bintang Sdn Bhd has beginning cash on hand of RM10,000 and the company wishes...
On March 2, 2015, Best Buy co. announced that it planned to repurchase up to $1...
On March 2, 2015, Best Buy co. announced that it planned to repurchase up to $1 billion of its common shares. The company also announced on that day that an increase in its quarterly dividend from $0.19 to $0.23 per share, and a one-time special dividend of $0.51 per share. The special dividend resulted from a windfall legal settlement related to manufacture of liquid crystal displays it had sold. Which method of returning capital to investors (repurchases, regular dividends, special...
On March 2, 2015, Best Buy Co. announced that it planned to repurchase up to $1...
On March 2, 2015, Best Buy Co. announced that it planned to repurchase up to $1 billion of its common shares. The company also announced on that day that an increase in its quarterly dividend from $0.19 to $0.23 per share, and a one-time special dividend of $0.51 per share. The special dividend resulted from a windfall legal settlement related to the manufacture of liquid crystal displays it had sold. Which method of returning capital to investors (repurchases, regular dividends,...
10 How many uniform annual receipts would be required from now that an initial investment of...
10 How many uniform annual receipts would be required from now that an initial investment of $1,000,000 would be recovered? Note that the annual receipts are $131,000 and starts three years from now at an interest rate of 12% per year.                
A firm invests $100,000 in a project today. It receives $15,000 a year from now, $20,000...
A firm invests $100,000 in a project today. It receives $15,000 a year from now, $20,000 two years from now, and $95,000 three years from now and nothing more. What is the IRR of the project? Where aX:aY are cells aX to aY which have cash flows entered into them. The initial investment is a negative cash flow so it should have a negative sign. Z is a "guess" IRR, usually you can set to 0.1 (which is 10%).
Q5: Minimum order quantity is 500 units, lead time is 1 week. What is/are the Planned Receipts for week 9?
Week 7 8 9 10 11 12 Gross Requirements 0 300 400 400 400 200 Scheduled Receipts 500 Projected ending inventory: 100 100 Net requirements Planned Receipts ??? Planned orders Q5: Minimum order quantity is 500 units, lead time is 1 week. What is/are the Planned Receipts for week 9? a. None of these answers are correct. b. 100 units. c. 0 units. d. 500 units. e. 400 units. Week 7 8 9 10 11 12 Gross Requirements 0 300...
Problem One: On March 1, 2019, Mark Company acquired real estate on which it planned to...
Problem One: On March 1, 2019, Mark Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash. An old warehouse on the property was razed at a cost of $6,400; the salvaged materials were sold for $1,200. Additional expenditures before construction began included $800 attorney’s fee for work concerning the land purchase, $3,800 real estate broker’s fee, $5,800 architect’s fee, and $11,000 to put in driveways and a parking lot....
Suppose that the forward price for a ton of lumber 1 year from now is $4,800....
Suppose that the forward price for a ton of lumber 1 year from now is $4,800. Storing a ton of lumber in a safe location for a year costs 5% of its value. The relevant interest rate is 18%. If the spot price of a ton of lumber is $4,000, what must be the convenience yield for this commodity?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT