FIN. ACCT. CUSTOM F17 BUNDLE
FIN. ACCT. CUSTOM F17 BUNDLE
8th Edition
ISBN: 9781119463504
Author: Kimmel
Publisher: WILEY C
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In 2022, the ABC Food company has total assets of $46,690,000, cash balance of $3,875,000, sales growth of -3% (-0.03), loss indicator of 1, CFO change indicator of 0. If the manager decides to invest $325,000, does she/he overinvest or underinvest? Based on the threshold of $60,000, do you have to conduct a further investigation and why?
You are the financial controller of Pack West (Pty) Ltd. Your company is experiencing difficulties with their cash flows owing to the Covid-19 uncertainty. At the end of April 2022, you noticed that the total sales of the company keep decreasing while the total cost are relatively stable, and you are worried that the company will not have sufficient funds to pay the salaries of R50 000 for April.You have the following historical information at your disposal:Total sales were R125 000 in January, R115 000 in February, and R110 000 and R95 000 for March and April, respectively. Historical information shows that 70% of the total sales are for cash and the debtors pay as follows:50% of the total debt one month after the sale, 30% in the following month and 20% in the third month after the sale.The total purchases for January were R100 000, R110 000 in February, and R100 000 and R105 000 for March and April, respectively. 30% of the total purchases are paid in cash and the rest of the…
In 2023, the Allen company had consulting revenues of $1, 200, 000, while operating costs were $830, 000. In 2024, Allen will be introducing a new service that will generate $166, 000 in sales revenues and $68, 000 in operating costs. Assuming no changes are expected for the other services, the differential revenue for 2024 will be:
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