Questions from Financial Management

Q: Conn Man's Shops, Inc., a national clothing chain, had

Conn Man's Shops, Inc., a national clothing chain, had sales of $300 million last year. The business has a steady net profit margin of 8 percent and a dividend payout ratio of 25 percent. The balance...

Q: Galehouse Gas Stations Inc., expects sales to increase from $1

Galehouse Gas Stations Inc., expects sales to increase from $1,500,000 to $1,700,000 next year. Mr. Galehouse believes that net assets (Assets Liabilities) will represent 70% of sales. His firm has a...

Q: Philip Morris is excited because sales for his clothing company are expected

Philip Morris is excited because sales for his clothing company are expected to double from $500,000 to $1,000,000 next year. Philip notes that net assets (Assets Liabilities) will remain at 50 percen...

Q: In Problem 1 if there had been no increase in sales and

In Problem 1 if there had been no increase in sales and all other facts were the same, what would Philip’s ending cash balance be? What lesson do the examples in Problems 1 and 2 illustrate?

Q: Discuss the advantage and disadvantage of level production schedules in firms with

Discuss the advantage and disadvantage of level production schedules in firms with cyclical sales.

Q: What are the basic benefits and purposes of developing pro forma statements

What are the basic benefits and purposes of developing pro forma statements and a cash budget?

Q: With inflation, what are the implications of using LIFO and FIFO

With inflation, what are the implications of using LIFO and FIFO inventory methods? How do they affect the cost of goods sold?

Q: Rapid corporate growth in sales and profits can cause financing problems.

Rapid corporate growth in sales and profits can cause financing problems. Elaborate on this statement.

Q: Explain the relationship between inventory turnover and purchasing needs.

Explain the relationship between inventory turnover and purchasing needs.

Q: What conditions would help make a percent-of-sales forecast

What conditions would help make a percent-of-sales forecast almost as accurate as pro forma financial statements and cash budgets?