EBK FUNDAMENTALS OF CORPORATE FINANCE
EBK FUNDAMENTALS OF CORPORATE FINANCE
9th Edition
ISBN: 9781260049237
Author: BREALEY
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 18, Problem 10QP

a.

Summary Introduction

To explain: The balancing item if sales increases by 20% using percentage of sales model.

b.

Summary Introduction

To discuss: The value of the balancing item.

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1.How is the company's financial performance based on the data?   2.What do you think are the factors affecting the number of bookings throughout the year? 3. What can you say about the company's revenue for 2020? Regardless if it's good or not, give strategic decisions that can help improve the revenue from its current status 4. What are your analysis and insights on the Financial statement.
Using Goal Seek/Solver and/or What-If Scenarios based on the below income statement, calculate the following a) the sales amount in order to realize $1,200,000 of net income without changing any of the expense accounts. b) to realize $1,200,000 without changing revenues and cost of goods sold. c) What could be the best scenario to achieve NI $1,200,000.
Case Study Questions What was the total postpaid revenue in 2017? What was the total net profit in 2017? Identify examples of strategies adopted by MAXIS in that year. How were the above strategies related to their Customer Relationship Management (CRM) and future sale?
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