Its activity during 2008 as measured by the cost of goods sold was $ 74,000. It therefore had an inventory turnover of 2.6 times. This represented an improvement from 2.05 times in 2005. 4. SciTronics had net fixed assets of $ 18,000 and sales of $ 244,000 in 2008.
The company’s net cash from operations also decreased from 262.69 million to 233.58 million in 2005, a difference of 29.1 million. This decrease in operational cash flow was largely attributed to a significant increase in inventories to 164.41 million from 43.63 million. In addition, Tiffany posted operational losses of 12.03 million and increased prepaid expenses of 16.34 million in 2006. However, the company effectively managed its accounts payables for the year at 17.79 million, a significant change from the prior year. In addition, Tiffany increased ‘other non-cash’ items within its operations to 67.01 million.
From 285.4 million to 297 million. During this year Labatt Genuine Draft percent of dollars sold went up by 152.63 percent. Released in 2011 only in the east. In 2012 released to central and west. Labatt Drys sales decreased in 2009 to 2011 by 37% of dollars sold.
Husky used annual observations from 20 prior years to estimate each of the four equations. Following are a definition of the variables used in the four equations and a statistical summary of these equations: St = Forecasted sales in dollars for Lockit in period t St–1 = Actual sales in dollars for Lockit in period t – 1 Gt = Forecasted U.S. gross domestic product in period t Gt–1 = Actual U.S. gross domestic product in period t – 1 Nt–1 = Lockit’s net income in period t – 1 Required: 1. Write Equations 2 and 4 in the form Y = a + bx. 2. If actual sales are $1,500,000 in 2009, what would be the forecasted sales for Lockit in 2010?
The net cash inflow and cash outflow are calculated using sales and production figures for the next 8 years. The unit cost from the first year is £0.89 which is the cost per mashing without depreciation and divided by 13,000 bottles. From this information provided, the cost will increase by 3.5% and also the selling price will increase by 4% every year (reference 4). These figures are based on the current rate inflation of 4% which is shown in appendix 9 The capital allowances are worked out on cased of 20% (Reference 5) and the annual investment allowance is £100,000 is available (Reference 6) in the first year which is restricted to £87,359. This figure is substrated from the acquisition giving a result of £332,641 which is the written down value.
__________ d. What is the amount of gross profit recognized in 2012? __________ e. As a result of this project, what is reported on the December 31, 2010, balance sheet? 9 6. (10 points) Assume Z-Mart appropriately uses the installment sales method of accounting for its installment sales. During 2011, Z-Mart made installments sales of $300,000 and received payments of $135,000 on those sales.
Over a five year period, starting in 2005, Lincare has reduced their ratio from 40.6 to 39.6. Gentiva Health Services remained nearly the same with a ratio of 57.1 in 2000 down to 56.9 in 2009. From an efficiency standpoint, Lincare is converting their receivables into cash faster than its competitor. In addition, Lincare has outperformed their cash conversion rate from 2008 to 2009. Lincare’s conversion rate went from 14 days to 17.5 days which means Lincare’s cash flow generation improves year after
The first step in helping Prescott was to calculate a new cost of capital—as the one used by WPC was 10 years old. I used the weighted average cost of capital equation to calculate a new WACC of 9.97%. My calculations are and assumptions are shown in further detail in the attached sheets. Next, I had to generate the free cash flows for years 2007-2013 using Prescott’s given assumptions. * $18 M purchase price * $1.8 M selling price * Investment in PPE (2007) was $16 M * Investment in PPE (2008) was $2 M * $4 M in Sales (2008) * $10 M in Sales (2009-2013) * COGS: 75% of Sales * SG&A: 5% of Sales * $2 M Operating Savings (2008) * $3.5 M Operating Savings (2009-2013) * Depreciation was on a straight-line basis for 6 years beginning in 2008 * $18 M / 6 years = $3 M * 40% tax rate * NWC: 10% of Sales * Salvage value was zero * The FCF per year was determined using the following: * Net Income + Depreciation Expense - ∆ Net Working Capital + Investment in PPE After generating the FCF for each year, I had to solve for NPV and IRR to value the investment.
Net initial investment outlay is $302,040. (Cost of new system + Installation) + (Proceeds from old equipment + Tax on proceeds + Removal cost) = Total cost + NCF (old) = 303,000 +-960 2. Tax depreciation savings = (36% tax rate) x (depreciation of each year) Depreciation for each year based on MACRS 5-year (Wikipedia) 3. Incremental cash flows = (Deprn. Tax savings + A.T. cost savings) each year [pic]2.
To start with, we decided to calculate SGR sustainable growth rate, which represents the growth rate that company can sustain without borrowing money. SGR = ROE x (1 - dividend-payout ratio) In case with Wilson Company SGR=ROE and equals 11.7% on average for the last 3 years. It turns that sales growth rate is twice higher than SGR. Based on our evaluation we expect 25% sales growth in 1985. Such difference indicates that company needs to borrow extra funds in 1985.