Chapter $1,2,$ and $3$ Work Assignment

Chapter $1$: Packard Industries Inc. Case Study

In $2013,$ the management committee of Packard Industries Inc. is considering investing $$800,000$ to purchase machinery and equipment to increase the productivity of its plant. In $2012,$ the company$$s revenue was $$2,800,000,$ goods purchased from suppliers totalled $$600,000,$ and the profit for the year was $$280,000.$ The company$$s $2012$ statement of financial position is as follows:

In $2013,$ management expects revenue to increase by $10\%.$ With cutbacks in different segments of their business activities, ROR is expected to improve to $12\%.$ Cost of sales as a percentage of revenue is expected to improve and decline to $20\%.$

Management also expects improvements in the working capital accounts. The company$$s objective is to lower trade receivables to $$370,000,$ with inventory levels expected to reach $$280,000.$

Questions

$1)$ Calculate the company's return on total assets for $2012$: $\%$

$2)$ How much cash will be provided by internal operations in $2013?$ $

$3)$ How much will be provided by each of the following?

Retained earnings $=$ $

Inventories $=$ $

Trade receivables $=$ $

$4)$ How much will management have to raise from external activities $($shareholders and lenders$)$ to proceed with an $$800,000$ investment in non$-$current assets? $