Questions from Financial Management

Q: National Beverage Company anticipates the following first-quarter sales for 2015

National Beverage Company anticipates the following first-quarter sales for 2015: $1,800,000 (January), $1,600,000 (February), and $2,100,000 (March). It posted the following sales figures for the las...

Q: California Cement Company anticipates the following fourth-quarter sales for 2014

California Cement Company anticipates the following fourth-quarter sales for 2014: $1,800,000 (October), $1,600,000 (November), and $2,100,000 (December). It posted the following sales figures for the...

Q: 1. Determine Cranston’s average production cycles for 2013 and 2014.

1. Determine Cranston’s average production cycles for 2013 and 2014. 2. Determine Cranston’s average collection cycles for 2013 and 2014. Assume that all sales are credit sales. 3. Determine Cranston’...

Q: Given the income statement below for National Beverage Company for 2013,

Given the income statement below for National Beverage Company for 2013, and the sales forecast from Problem 1, prepare a pro forma income statement for 2014. National Beverage Company Income Stateme...

Q: Kolman Kampers has a production cycle of thirty-five days,

Kolman Kampers has a production cycle of thirty-five days, a collection cycle of twenty-one days, and payment cycle of fourteen days. What are Kolman’s business operating cycle and cash conversion cyc...

Q: Myers and Associates (from Problem 9) has hired a new

Myers and Associates (from Problem 9) has hired a new accountant, who promises to increase the speed of payment by clients. The new collection times will be 60% at the end of the first month, 25% at t...

Q: Tennindo Inc. is starting up its new, cost-efficient

Tennindo Inc. is starting up its new, cost-efficient gaming system console, the yuu. Tennindo currently has 4,000 cash-paying customers and makes a profit of $60 per unit. Tennindo wants to expand its...

Q: Screendoor Inc. is a credit-screening consulting firm. Screendoor

Screendoor Inc. is a credit-screening consulting firm. Screendoor advises Tennindo Inc. (from Problem 11) that it can offer a credit-screening device that is 90% accurate and costs $5.00 per customer...

Q: As manager of Fly-by-Night Airlines, you decide

As manager of Fly-by-Night Airlines, you decide to allow customers 90 days to pay their bills. To encourage early payment, though, you allow them to reduce their bills by 1.5% if paid within the first...

Q: Tinnendo Inc. believes it will sell 4 million zen-zens

Tinnendo Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year (note that this figure is for annual sales). The inventory manager plans to order zen-zens forty times over...