Petlassa is a company with a large distribution network and selling automobile tires. The company's finance manager will meet with the General Manager to discuss the financial information for the next 3 months. Last month's TL sales amount and sales forecasts for the next 3 months are given below: Last Month May 250,000 Estimations/Forecasts June 100,000 July 150,000 August 250,000 September 100,000 The company collects 40% of its sales in cash and 60% as 1 month term (later). Purchases make up 60% of sales. Petlassa makes the relevant purchase one month before its sales; However, it makes the payment 1 month after the purchase date. Labor expenses are 5% of sales and paid in the relevant month. General administration expenses amount to 15% of the sales and are paid in the relevant month. 10,000 TL income tax will be paid in August. The 50,000 TL dividend payment will be made in June. The cash balance on June 1 is required to be 80,000 TL. All transactions take place at the end of the month. As of today (June 1), the discount rate has been determined as 14%. What is the value of the company's cash flows?
Question 2: Petlassa is a company with a large distribution network and selling automobile tires. The company's finance manager will meet with the General Manager to discuss the financial information for the next 3 months. Last month's TL sales amount and sales
Last Month
May 250,000
Estimations/Forecasts
June 100,000
July 150,000
August 250,000
September 100,000
The company collects 40% of its sales in cash and 60% as 1 month term (later).
Purchases make up 60% of sales. Petlassa makes the relevant purchase one month
before its sales; However, it makes the payment 1 month after the purchase date.
Labor expenses are 5% of sales and paid in the relevant month.
General administration expenses amount to 15% of the sales and are paid in the
relevant month.
10,000 TL income tax will be paid in August.
The 50,000 TL dividend payment will be made in June.
The cash balance on June 1 is required to be 80,000 TL.
All transactions take place at the end of the month. As of today (June 1), the discount rate
has been determined as 14%. What is the value of the company's cash flows?
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