Questions from Financial Management

Q: The Denver Corporation has forecast the following sales for the first seven

The Denver Corporation has forecast the following sales for the first seven months of the year: Monthly material purchases are set equal to 40 percent of forecast sales for the next month. Of the to...

Q: Wright Lighting Fixtures forecasts its sales in units for the next four

Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: Wright maintains an ending inventory for each month in the amount of one and one-half times the expected sa...

Q: The Volt Battery Company has forecast its sales in units as follows

The Volt Battery Company has forecast its sales in units as follows: Volt Battery always keeps an ending inventory equal to 110 percent of the next month’s expected sales. The endi...

Q: Graham Potato Company has projected sales of $6,000 in

Graham Potato Company has projected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 in December. Of the company’s sales, 20 percent are paid for by cash and 80 perce...

Q: Harry’s Carryout Stores has eight locations. The firm wishes to expand

Harry’s Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the f...

Q: Archer Electronics Company’s actual sales and purchases for April and May are

Archer Electronics Company’s actual sales and purchases for April and May are shown here, along with forecast sales and purchases for June through September. The company makes 20 p...

Q: Owen’s Electronics has nine operating plants in seven Southwestern states. Sales

Owen’s Electronics has nine operating plants in seven Southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales...

Q: The Manning Company has financial statements as shown next, which are

The Manning Company has financial statements as shown next, which are representative of the company’s historical average. The firm is expecting a 35 percent increase in sales next ye...

Q: Conn Man’s Shops, a national clothing chain, had sales of

Conn Man’s Shops, a national clothing chain, had sales of $350 million last year. The business has a steady net profit margin of 9 percent and a dividend payout ratio of 25 percent....

Q: Gale house Gas Stations Inc. expects sales to increase from $

Gale house Gas Stations Inc. expects sales to increase from $1,550,000 to $1,750,000 next year. Gale house believes that net assets (Assets  Liabilities) will represent 50 percent of sales. His firm...