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Complete Study Problem 14-4 from the end of Chapte...

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Solution


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Complete Study Problem 14-4 from the end of Chapter 14 and Study Problem 15-8 from the end of Chapter 15 and post your answers to the discussion board. Remember to complete all parts of the problems and report the results of your analysis. Do not forget to show the necessary steps and explain how your attained that outcome. PLEASE SHOW ALL STEPS THANK YOU//////////// 14-4 PROBLEM 14-4 FINANCIAL FORECASTING-PERCENT OF SALES DATA Current sales 15,000,000 Projected sales 20,000,000 Current assets 5,000,000 Fixed assets 5,000,000 Current assets/Sales 33.33% Net profit margin 5.00% Rise in Fixed assets 100,000 Accts payable 1,500,000 Long-term debt 2,000,000 Common equity 6,500,000 Including: R/E 4,000,000 Dividends 500,000 A) Projected Financed Needs = B) Discretionary Financing Needs = C) Sales = 0.18 (2,900,000) Raise = 15-8 PROBLEM 15-8 COST OF ACCOUNTS RECEIVABLE DATA Needs 300,000 Net credit terms 60 Monthly credit sales 200,000 A/R balance 400,000 Over prime 2% Processing charge 1% Receivable pledged 200,000 Face value lent 75% A) prime rate 11% Interest = 39,000 24,000 APR = B) Over prime 3% Compensating balance 15% Already maintained bal 80,000 Compensating bal = 45,000 Interest = 42,000 APR =

 

Paper#10086 | Written in 18-Jul-2015

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