Homework Help is Here – Start Your Trial Now!
Business
Finance
4212 -8- Exhibit 1 Selected Operating Projections for Match My Doll Clothing Line Expansion ($ in thousands) 2011 2012 2013 2014 2015 2016 2019 2020 $ 9,082 $ 10,59311,440 $ 12,355 13,344 80% Revenue $ 14,411 ue Grow 52.4% 80% Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs 660 7,079 674 7,685 5,078 5,521 152 5,029 2,102 7,132 Depreciation o Total Production Costs 5,419 Selling, General & Administrative Total Operating Expenses 2,762 1,155 $ 3,917 4,131 1,735 2,648 $ 8,969 2,452 $ 9,687 10,462 $11,299 Operating Profit $ (1,250) Q Working Capital Assumptions Minimum Cash Balance as % of Sales 5 Days Sales Outstanding I Inventory Turnover (prod. cost/ending inv.) 8 Days Payable Outstanding (based on tot. op. exp.) 59.2x 59.2x 59.2x 59.2x 59.2x 12.7x 31.0x 59.2x 59.2x 59.2x 59.2x 30.9x 31.0x 31.0x api 2 Exhibit 2 Selected Operating Projections for Design Your Own Doll (S in thousands) 2011 2013 2014 2015 2016 2018 2020 $ 6,000 14,360 139.3% 20,222 40.8% S 21,435 22,721 60% Revenue 24,084 25,529 27,061 S 28,685 Revenue 6.0% 60% 60% Growth Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs 1,683 7,651 1,650 1,786 1,858 1,895 15,694 11,427 12,182 13,833 16,712 C 520 17,113 ż Depreciation Total Production Costs 18,140 5,412 $18,65619,775 20,962 22,219 23,553 16,145 o Selling, General & Administrative 5,737 S 24,966 Total Operating Expenses $ 5,45012,566 $ 17,498 Operating Profit Working Capital Assumptions: Minimum Cash Balance as % of Sales Days Sales Outstanding $(1,201) $0 550 1,794$ 2,7242,779 2,946 3,123 3,310 3,509 3,719C 3.0% 3.0% 59.2x 59.2x 59.2x 59.2x 59.2x 59.2x OInventory Turnover (prod. cost/ending inv.) 12.7x 33.9x Days Payable Outstanding (based on tot. op. exp.) 33.9x 33.9x 33.9x 33.9x 33.9x 33.9x 4,610 $ 2,192 $ 1,043

4212 -8- Exhibit 1 Selected Operating Projections for Match My Doll Clothing Line Expansion ($ in thousands) 2011 2012 2013 2014 2015 2016 2019 2020 $ 9,082 $ 10,59311,440 $ 12,355 13,344 80% Revenue $ 14,411 ue Grow 52.4% 80% Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs 660 7,079 674 7,685 5,078 5,521 152 5,029 2,102 7,132 Depreciation o Total Production Costs 5,419 Selling, General & Administrative Total Operating Expenses 2,762 1,155 $ 3,917 4,131 1,735 2,648 $ 8,969 2,452 $ 9,687 10,462 $11,299 Operating Profit $ (1,250) Q Working Capital Assumptions Minimum Cash Balance as % of Sales 5 Days Sales Outstanding I Inventory Turnover (prod. cost/ending inv.) 8 Days Payable Outstanding (based on tot. op. exp.) 59.2x 59.2x 59.2x 59.2x 59.2x 12.7x 31.0x 59.2x 59.2x 59.2x 59.2x 30.9x 31.0x 31.0x api 2 Exhibit 2 Selected Operating Projections for Design Your Own Doll (S in thousands) 2011 2013 2014 2015 2016 2018 2020 $ 6,000 14,360 139.3% 20,222 40.8% S 21,435 22,721 60% Revenue 24,084 25,529 27,061 S 28,685 Revenue 6.0% 60% 60% Growth Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs 1,683 7,651 1,650 1,786 1,858 1,895 15,694 11,427 12,182 13,833 16,712 C 520 17,113 ż Depreciation Total Production Costs 18,140 5,412 $18,65619,775 20,962 22,219 23,553 16,145 o Selling, General & Administrative 5,737 S 24,966 Total Operating Expenses $ 5,45012,566 $ 17,498 Operating Profit Working Capital Assumptions: Minimum Cash Balance as % of Sales Days Sales Outstanding $(1,201) $0 550 1,794$ 2,7242,779 2,946 3,123 3,310 3,509 3,719C 3.0% 3.0% 59.2x 59.2x 59.2x 59.2x 59.2x 59.2x OInventory Turnover (prod. cost/ending inv.) 12.7x 33.9x Days Payable Outstanding (based on tot. op. exp.) 33.9x 33.9x 33.9x 33.9x 33.9x 33.9x 4,610 $ 2,192 $ 1,043

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2.5P
See similar textbooks
icon
Related questions
Question

 

Compute internal rate of return (IRR), payback period, and profitability index (PI) for each project.

4212 -8- Exhibit 1 Selected Operating Projections for Match My Doll Clothing Line Expansion ($ in thousands) 2011 2012 2013 2014 2015 2016 2019 2020 $ 9,082 $ 10,59311,440 $ 12,355 13,344 80% Revenue $ 14,411 ue Grow 52.4% 80% Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs 660 7,079 674 7,685 5,078 5,521 152 5,029 2,102 7,132 Depreciation o Total Production Costs 5,419 Selling, General & Administrative Total Operating Expenses 2,762 1,155 $ 3,917 4,131 1,735 2,648 $ 8,969 2,452 $ 9,687 10,462 $11,299 Operating Profit $ (1,250) Q Working Capital Assumptions Minimum Cash Balance as % of Sales 5 Days Sales Outstanding I Inventory Turnover (prod. cost/ending inv.) 8 Days Payable Outstanding (based on tot. op. exp.) 59.2x 59.2x 59.2x 59.2x 59.2x 12.7x 31.0x 59.2x 59.2x 59.2x 59.2x 30.9x 31.0x 31.0x api 2 Exhibit 2 Selected Operating Projections for Design Your Own Doll (S in thousands) 2011 2013 2014 2015 2016 2018 2020 $ 6,000 14,360 139.3% 20,222 40.8% S 21,435 22,721 60% Revenue 24,084 25,529 27,061 S 28,685 Revenue 6.0% 60% 60% Growth Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs 1,683 7,651 1,650 1,786 1,858 1,895 15,694 11,427 12,182 13,833 16,712 C 520 17,113 ż Depreciation Total Production Costs 18,140 5,412 $18,65619,775 20,962 22,219 23,553 16,145 o Selling, General & Administrative 5,737 S 24,966 Total Operating Expenses $ 5,45012,566 $ 17,498 Operating Profit Working Capital Assumptions: Minimum Cash Balance as % of Sales Days Sales Outstanding $(1,201) $0 550 1,794$ 2,7242,779 2,946 3,123 3,310 3,509 3,719C 3.0% 3.0% 59.2x 59.2x 59.2x 59.2x 59.2x 59.2x OInventory Turnover (prod. cost/ending inv.) 12.7x 33.9x Days Payable Outstanding (based on tot. op. exp.) 33.9x 33.9x 33.9x 33.9x 33.9x 33.9x 4,610 $ 2,192 $ 1,043
Transcribed Image Text:4212 -8- Exhibit 1 Selected Operating Projections for Match My Doll Clothing Line Expansion ($ in thousands) 2011 2012 2013 2014 2015 2016 2019 2020 $ 9,082 $ 10,59311,440 $ 12,355 13,344 80% Revenue $ 14,411 ue Grow 52.4% 80% Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs 660 7,079 674 7,685 5,078 5,521 152 5,029 2,102 7,132 Depreciation o Total Production Costs 5,419 Selling, General & Administrative Total Operating Expenses 2,762 1,155 $ 3,917 4,131 1,735 2,648 $ 8,969 2,452 $ 9,687 10,462 $11,299 Operating Profit $ (1,250) Q Working Capital Assumptions Minimum Cash Balance as % of Sales 5 Days Sales Outstanding I Inventory Turnover (prod. cost/ending inv.) 8 Days Payable Outstanding (based on tot. op. exp.) 59.2x 59.2x 59.2x 59.2x 59.2x 12.7x 31.0x 59.2x 59.2x 59.2x 59.2x 30.9x 31.0x 31.0x api 2 Exhibit 2 Selected Operating Projections for Design Your Own Doll (S in thousands) 2011 2013 2014 2015 2016 2018 2020 $ 6,000 14,360 139.3% 20,222 40.8% S 21,435 22,721 60% Revenue 24,084 25,529 27,061 S 28,685 Revenue 6.0% 60% 60% Growth Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs 1,683 7,651 1,650 1,786 1,858 1,895 15,694 11,427 12,182 13,833 16,712 C 520 17,113 ż Depreciation Total Production Costs 18,140 5,412 $18,65619,775 20,962 22,219 23,553 16,145 o Selling, General & Administrative 5,737 S 24,966 Total Operating Expenses $ 5,45012,566 $ 17,498 Operating Profit Working Capital Assumptions: Minimum Cash Balance as % of Sales Days Sales Outstanding $(1,201) $0 550 1,794$ 2,7242,779 2,946 3,123 3,310 3,509 3,719C 3.0% 3.0% 59.2x 59.2x 59.2x 59.2x 59.2x 59.2x OInventory Turnover (prod. cost/ending inv.) 12.7x 33.9x Days Payable Outstanding (based on tot. op. exp.) 33.9x 33.9x 33.9x 33.9x 33.9x 33.9x 4,610 $ 2,192 $ 1,043
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS