A producer of wine in Italy forecasted that next January22 the sales will be 50,000 and that
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Question:
A producer of wine in Italy forecasted that next January’22 the sales will be 50,000€ and that these sales will increase by 10% per month during the next six months. We assume that all sales are received the same month and all payments are done the same month. The gross profit of that wine producer is 20%. On origin (Jan’22) the company counts 100,000€ cash On Feb’22, the company will have to invest 80,000€ in a new dozing machine. In March’22, they’ll have to buy a new bottling machine that costs 70,000€.
1. Is there any need for funds? If so, when?
2. In case of any need of funds, how could you get raise those funds? Why?
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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