1) Frank's Sporting Goods projects sales for the second quarter of 20XX to be as follows: April $100,000 May $120,000 June $110,000 20% of Frank's sales are for cash, 70% of accounts receivable are collected one month following the sale, and the rest are collected two months following the sale. January sales were $40,000, February sales were $60,000, and March sales were $80,000. a) Prepare a monthly schedule of cash receipts for the second quarter of 20XX. b) What is the balance in accounts receivable at the end of June? COLLECTIONS: 2)3. A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 30% of sales, while fixed cost will be $540,000. The first year's sales estimates are $1,500,000. The cost to start up this restaurant will be $2,000,000. Two financing alternatives are being considered: a) 50% equity financing and 50% debt at 9%, or b) all equity financing. Common stock can be sold at $5 per share. FINANCING PLAN A IS REQUIRED. FINANCING PLAN B IS EXTRA CREDIT ONLY!! a) Compute the Operating Break?even point in dollars. b) Compute DOL. c) Compute DFL and DCL. 3)Mountain Home Systems, Inc. is a well?known and reputable supplier of integrated circuits to manufacturers of telecommunications devices. The firm is currently debating whether to expand its sales to car?telephone manufacturers. While the firm expects an extra $3 million in sales if it enters this market, it also knows that 15% of its sales will ultimately be uncollectible. In addition, collection costs will be 3% on all new sales and the firm's production and selling costs are 80% of sales. Mountain Home's tax rate is 30%. a) Calculate Mountain Home's additional net income from the new sales. b) If Mountain Home can turn its receivables over 4 times per year, what will its additional investment in accounts receivable be and what will the firm earn as an after?tax return on that investment? : c) Mountain Home management requires that any new project earn a minimum of 10% return on investment. Should the firm enter the car?telephone manufacturer market?,Hi, I have already sent question #1 to one of your tutors and was given a price of $7.50. The question I sent earlier had different numbers but was the same question. I was wondering if I can get a better price if I get all 3 questions done from you guys?
Paper#7148 | Written in 18-Jul-2015Price : $25