Bu340 managerial finance i- assignment 3

ASSIGNMENT 03
BU340 Managerial Finance I
Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length; refer to the “Assignment Format” page for specific format requirements.
NOTE: Show all of your work in your response.

Complete the following Problems located at the end of Chapter 4 in your textbook. NOTE: The problems have been scanned into this document for your convenience.

1. Cyber Security Systems has sales of 3,000 units at $50 per unit last year. The marketing manager projects a 20 percent increase in unit volume sales this year with a 10 percent proce increase. Returned merchandise will represent 6 percent of total sales. What is your net dollar sales projection for this year?

2. Delsing Plumbing Company has beginning inventory of 14,000 units, will sell 50,000 units for the month, and desires to reduce ending inventory to 40 percwnt of beginning inventory. How many units should Delsing produce? 

3. At the end of January, Higgins Data Systems had an inventory of 600 units, which cost $16 per unit to produce. During February the company produced 850 units at a cost of $19 per unit. It the firm sold 1,100 units in February, what was its cost of goods sold (assume LIFO inventory accounting)?

4. Victoria’s Apparel has forecast credit sales for the fourth quarter of the year as:
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
September (actual)……..$50,000
Fourth Quarter
October…………………$40,000
November……..………..$35,000
December……………….$60,000

Experience has shown that 20 percent of sales receipts are collected in the month of sales, 70 percent in the following month, and 10 percent are never collected.
Prepare a schedule of cash receipts for Victoria’s Apparel covering the fourth quarter (October through December)

5. The Manning Company has financial statements as shown below which are representative of the company’s historical average. 
The firm is expecting a 20 percent increase in sales next year, and management is concerned about the company’s need for external funds. The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization in the existing store. Among Liabilities, only current liabilities vary directly with sales.
Using the percent-of-sales method, determine whether the company has external financing needs, or a surplus of funds. (Hint: A profit margin and payout ratio must be found from the income statement)

Income Statement
Sales………………………………$200,000
Expenses………………………….158,000
Earnings before interest and taxes…$42,000
Interest………………………………7,000
Earnings before taxes……………….$35,000
Taxes………………………………..15,000
Earnings after taxes………………….$20,000
Dividends…………………………….6,000

Balance Sheet
Assets
Cash…………………$5,000
Accouts receivable.….40,000
Inventory…………….75,000
Current assets….$120,000
Fixed Assets………….80,000

Total assets………..$200,000

Liabilities and Stockholders’ Equity
Accounts payable……..$25,000
Accrued wages…………..1,000
Accrued taxes……………2,000
Current liabilities……$28,000
Notes papyable……………7,000
Long-term debt………….15,000
Common stock…………120,000
Retained earnings………..30,000

Total Liabilities and stockholders’ equity….$200,000