FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Students have asked these similar questions
A company is thinking of investing in one of two potential new products for sale. The
projections are as follows:
Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)
(150,000) outlay
24,000
(150,000) outlay
12,000
24,000
44,000
84,000
01234
2
25,333
52,000
63,333
The CFO of AkH sp. z 0.0. is developing a financial plan for the company for the year 2022.
They would like to check if the strategy, planned for year 2022, is financially viable. According to their
calculations, the forecasted financial data for the year 2022 is as follows (all data given in thousands and
represent the projected changes between the beginning and end of 2022):
a. Revenues = 2,000
b. Operating costs (excluding depreciation) = 1,400
c. Depreciation = 100
d. Other operating costs = 100
e. Financial costs = 50
f. Opening receivables balance = 100, final balance = 200
g. Opening inventory balance = 300, final balance = 500
h. Opening account payables balance = 300, final account payables balance = 500
a. Opening cash balance = 200
j. Credit payment = 100
k. Proceeds from new issuance of shares = 100
ax. Investment expenditure = 300
%3D
%3D
We also know that the company pays a 19% income tax.
a. Based on the given information, please develop a cash flow statement and decide…
An investment services company experienced dramatic growth in the last two decades. The following models for the company's revenue R and expenses or costs C (both in
millions of dollars) are functions of the years past 1990.
R(t) = 21.4e0.131t and C(t) = 18.6e0.131t
(a) Use the models to predict the company's profit In 2021. (Round your answer to one decimal place.)
$ 43.8
million
(b) How long before the profit found in part (a) is predicted to double? (Round your answer to the nearest whole number.)
years after 1990
Enter a number.
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