Myers and Associates, a famous law office in California, bills it clients on the first of each month. Clients pay in the following fashion: 40% pay at the end of the first month, 30% pay at the end of the second month, 20% pay at the end of the third month, 5% pay at the end of the fourth month, and 5% default on their bills. Myers wants to know the anticipated cash flow for the first quarter of 2009 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are asfollows:
Answer to relevant QuestionsMyers and Associates (from Problem 9) has hired a new accountant, who promises to increase the speed of payment by clients. The new collection times will be 60% at the end of the first month, 25% at the end of the second ...Tinnendo Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year (note that this figure is for annual sales). The inventory manager plans to order zen-zens forty times over the next year. The ...Your raw material supplier has been accepting payments on 30 day terms with no interest penalty. Recently, you received an invoice which stated that the supplier would offer terms of 1/10, net 30. You have a line of credit ...Below is an abbreviated income statement for Wal-Mart. Predict the net income for the period ending January 31, 2010, by determining the growth rates of sales, COGS, SG&A, and interest expense. Use a tax rate of37%.Go to a Web site such as Yahoo.com and find the sales, net income, total assets, and total equity of the following five actively traded companies: Microsoft (MSFT), Boeing (BA),Wal-Mart (WMT), Procter and Gamble (PG), and ...
Post your question