Submitted by: Submitted by dimasalexandros
Views: 341
Words: 446
Pages: 2
Category: Business and Industry
Date Submitted: 06/06/2011 03:04 AM
Coffee Prep Shops
Balance Sheet
December 31, 2009 (in millions)
Assets Liabilities and Stockholders'Equity
Cash $20 Accounts Payable $15
Accounts Receivables 30 Accrued Expenses 5
Inventory 55 Other Payables 40
Plant and Equipment 75 Common Stock 60
Retained Earnings 60
Total Assets 180 Total Liab. + S/E 180
Other Data:
Sales last year 200 ( in millions)
Net Profit Margin 12%
Dividend Payout Ratio 40%
Forecasted Sales 15% increase from last year
Required: Find the amount needed for external financing required( all
assets are variable and all liabilities are variable)
RNF=A/S(ΔS)-L/S(ΔS)-PS2(1-D)
A/S= % RELATIONSHIP OF VARIABLE ASSETS TO SALES
ΔS= Δ change in Sales
L/S= % relationship of variable liabilities to sales
P= Profit margin
S2=The new sales level
D= Dividend Payout Ratio
RNF = 180 millions/200 millions (30 millions)-60 millions /200 millions -0.12X230 millions (1-0.40) =
= 27 millions -9 millions -0.12x230 millions x0.6 =
= 18 millions -16,56 millions
=$1,44 millions
Berry Company had the following data:
Beginning inventory 7,000 units on Jan. 1, 2009
Costs for beginning inventory per unit- Material $9.00, $5.00, and Overhead $4.10
During 2009 28,500 units produced with the following costs per unit:
Material $11.50, Labor $4.80, and Overhead $6.20
Sales in units 31,500 at $29.60 each
Inventory method is LIFO
Required: Find the gross profit and ending inventory.
WHEELS
Sales Projected in Units 31,500
Sales Price $29,60
Sales Revenue $932,400
Cost of Goods Sold
BI – Beginning Inventory 7,000 units
Cost per Unit Material $16*85=$1,360
Remaining Units (1,000-85)=
=915*$18=$16,470
Cost of Goods Sold
Gross Profit $12,170
Beginning Inventory $4,960
Total Production Costs $62,710
Total Inventory Available for Sale $67,670
Costs of Goods Sold
Ending Inventory...