Given the following: Income Revenue $15,120,000 Cash $400,000 $11,500,000 Inventory $700,000 Gross profit $3,620,000 Accounts receivable...
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Given the following: Income Revenue $15,120,000 Cash $400,000 $11,500,000 Inventory $700,000 Gross profit $3,620,000 Accounts receivable $1,800,000 Prepaid expenses & $150,000 Jon SGA $2,100,000 Total current assets $3,050,000 EBITDA $1,520,000 Total fixed assets $1,000,000 Total assets Depreciation $80,000 interest Net profit $80,000 $1,360,000 Accounts payable $800,000 Other short term liabilities $120,000 $920,000 $1,180,000 TotalBabiies $2,100,000 Total owners equity $1,950,000 Total abilities & Please calculate (3 points each): Hint: Use 360 days for calculations, not 36! What is the company's Days Sales & Outstanding? If DSO was reduced by 2 days, what + would Cash be? If DSO was reduced by 2 days, what 5 would Net Profit be? Assuming that COGS equal Purchases, what is the company's 3 Days Payables Outstanding? If DPO was reduced by 2 days, what 7 would Cash be? What is the company's Dash 3 Conversion Cycle? 9 What is the company's Current Debt to Equity ratio of 1.5 (not counting Accounts Payable), how much additional debt could we 0 assume? Using our simple approach to calculating funding needs, to increase revenues by 50x, how much additional funding do we need $1 regardless of source? Hint: Calculate these first for held Daily sales Daily COGS Daily purchases DPO CCC 32 Given the following: Income Revenue $15,120,000 Cash $400,000 $11,500,000 Inventory $700,000 Gross profit $3,620,000 Accounts receivable $1,800,000 Prepaid expenses & $150,000 Jon SGA $2,100,000 Total current assets $3,050,000 EBITDA $1,520,000 Total fixed assets $1,000,000 Total assets Depreciation $80,000 interest Net profit $80,000 $1,360,000 Accounts payable $800,000 Other short term liabilities $120,000 $920,000 $1,180,000 TotalBabiies $2,100,000 Total owners equity $1,950,000 Total abilities & Please calculate (3 points each): Hint: Use 360 days for calculations, not 36! What is the company's Days Sales & Outstanding? If DSO was reduced by 2 days, what + would Cash be? If DSO was reduced by 2 days, what 5 would Net Profit be? Assuming that COGS equal Purchases, what is the company's 3 Days Payables Outstanding? If DPO was reduced by 2 days, what 7 would Cash be? What is the company's Dash 3 Conversion Cycle? 9 What is the company's Current Debt to Equity ratio of 1.5 (not counting Accounts Payable), how much additional debt could we 0 assume? Using our simple approach to calculating funding needs, to increase revenues by 50x, how much additional funding do we need $1 regardless of source? Hint: Calculate these first for held Daily sales Daily COGS Daily purchases DPO CCC 32
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