Homework Answers
Inventory can be forecasted using multiple methods like historical and cyclical averages, sales force forecast, market research etc depending on the product, market and forecasted market scenario.
Similarly accounts payable is also depended on the sales, COĢS, the supply chain related parameters, revenue, the credit payment history, history of payment defaults etc.
Thus a multiple factors can contribute to inventory and accounts payable forecast, pinpointing one factor is difficult
But from the options above, option B is the best option as COGS has a direct impact on the inventory and accounts payable as they define the minimum price for the inventory and the payments due to the suppliers.
Add Answer to:
11. Which is the recommended way to forecast items such as inventory and accounts payable? a)...
10. Which of the following is the recommended approach to forecast COGS, and why? a) Forecast...
10. Which of the following is the recommended approach to forecast COGS, and why? a) Forecast COGS based on revenue growth, since it provides flexibility in the model. b) Forecasting COGS based on the forecast ratio of COGS to sales allows for possible improvements in COGS relative to sales. c) Forecast COGS based on revenue growth since COGS and revenues have a direct relationship. d) Forecasting COGS based on inventory is recommended because inventory prices and COGS are correlated.
Q.12 11 Tulevasted. poutny assets and operating d) Inventory and accounts payable should be forecasted based...
Q.12
11 Tulevasted. poutny assets and operating d) Inventory and accounts payable should be forecasted based on total assets, as these tend to scale together 12. Which of the following are true concerning forecasting interest income? I. It is a nonoperating measure. II. Its typical forecast driver is revenue. III. It is typically the same from year to year for firms that generate high cash flow. IV. The typical forecast ratio is interest income in the current period divided by...
Analyze, Forecast, and Interpret Income Statement and Balance Sheet
Following are the income statement and balance sheet of DP Inc.DATA PROCESSING INC.Statement of Consolidated EarningsFor Year Ended June 30, 2019, $ millionsTotal revenues$14,175.2Operating expenses7,145.9Systems development and programming costs636.3Depreciation and amortization304.4Total cost of revenues8,086.6Selling, general, and administrative expenses3,064.2Interest expense129.9Total expenses11,280.7Other (income) expense, net(111.1)Earnings before income taxes3,005.6Provision for income taxes712.8Net earnings$2,292.8DATA PROCESSING INC.Balance Sheet$ millionsJune 30,2020ForecastCurrent assetsCash and cash equivalents$1,949.2Accounts receivable, net2,439.3Other current assets519.6Total current assets before funds held for clients4,908.1Funds half for clients29,434.2Total current assets34,342.3Long-term receivables, net23.8Property, plant and equipment,...
XYZ Company Balance Sheet 12/31/XXXX Assets A Current Assets Cash Accounts Receivable Inventory Prepaid Items Other...
XYZ Company Balance Sheet 12/31/XXXX Assets A Current Assets Cash Accounts Receivable Inventory Prepaid Items Other CA Total Current Assets Net Plant & Equipment Total Assets $7,500 12,100 10,400 5,900 4,300 $40,200 82,300 $122,500 XYZ Company Balance Sheet 12/31/xxxx Liabilities & Equity Current Liabilities Accounts Payable Wages Payable Notes Payable Taxes Payable Total Current Liabilities Long Term Debt Total Liabilities $7,200 3,600 5,400 4.200 $20,400 35,700 $56,100 Common Stock Retained Earnings 28,700 37,700 Total Liabilities & Equity $122,500 Homework Problem,...
117. Based on the following data, what is the amount of working capital? Accounts payable..... Accounts...
117. Based on the following data, what is the amount of working capital? Accounts payable..... Accounts receivable.......... Cash............. Intangible assets.............. Inventory............ Long-term Investments............ Long-liabilities........... Short-term Investments........... Notes payablo (short-term).. Plant assets....... Prepald expenses............. $31,000 57,000 15,000 50,000 69.000 80,000 100,000 40,000 28,000 670,000 1,000 couron . . .... ............... a. $123,000 b. $151,000 c. $203,000 d. $53,000 81. Expenses are incurred a. only on rare occasions. b. to produce assets. c. to produce liabilities. d. to generate revenues.
1. Based on the following data, what is the amount of working capital? Accounts payable....................$32,000 Accounts...
1. Based on the following data, what is the amount of working capital? Accounts payable....................$32,000 Accounts receivable....................64,000 Accrued liabilities....................7,000 Cash.........................................20,000 Intangible assets............................40,000 Inventory...............................................72,000 Long-term investments...............................100,000 Long-term liabilities.....................................75,000 Marketable securities.................................35,000 Notes payable (short-term)........................20,000 Property, plant, and equipment.................625,000 Prepaid expenses.........................................2,000 WHAT IS WORKING CAPITAL? a. $162,000 b. $134,000 c. $193,000 d. $62,000 2. Use the following data to determine the total dollar amount of assets to be classified as current assets. Cash..............................................$60,000 Prepaid insurance..........................40,000 Accounts receivable......................50,000 Inventory.........................................70,000 Land held for investment................80,000 Land................................................95,000...
Assume current liabilities include only items from operations (e.g., accounts payable, taxes payable). Long-term liabilities include...
Assume current liabilities include only items from operations (e.g., accounts payable, taxes payable). Long-term liabilities include items from financing (e.g. bonds and other long-term liabilities). Note that the company did not sell any equipment and did not borrow any additional long-term liabilities throughout the year. Prepare the cash flow statement for 2020 using the indirect method. Assume no dividends were declared or paid in 2020. Do not enter dollar signs commas in the input boxes. Use the negative sign for...
Accounts payable $36,210 Accounts receivable 68,782 Accrued liabilities 6,125 Cash 23,853 Intangible assets 44,527 Inventory 72,281...
Accounts payable $36,210 Accounts receivable 68,782 Accrued liabilities 6,125 Cash 23,853 Intangible assets 44,527 Inventory 72,281 Long-term investments 118,145 Long-term liabilities 77,377 Marketable securities 35,004 Notes payable (short-term) 28,185 Property, plant, and equipment 615,187 Prepaid expenses 2,760 Based on the above data, what is the amount of working capital? $132,160 $980,539 $612,427 $202,680
Instructions: Complete the 2006 forecast using the assumptions below. If a line does not have an...
Instructions:
Complete the 2006 forecast using the assumptions below. If a
line does not have an explicit assumption, you should be able to
figure it out through logic (using the structure of the financial
statements and/or some simple math). Your forecast
should result in entries in all the green-shaded cells below.
The firm does not pay any dividends, so all net income will flow
to Net Worth on the Balance Sheet.
We will plug the cash account on the balance sheet...
16 - 17 and 18 please... Accounts payable Accounts receivable Accrued liabilities Cash Intangible assets Inventory...
16 - 17 and 18 please...
Accounts payable Accounts receivable Accrued liabilities Cash Intangible assets Inventory Long-term investments Long-term liabilities Marketable securities Notes payable (short-term) Property, plant, and equipment Prepaid expenses $ 40,000 65,000 7,000 30,000 40,000 72,000 110,000 75,000 36,000 30,000 625,000 2,000 16. Based on the above data, what is the amount of quick assets? a. $205,000 b. $203,000 c. $131,000 d. $66,000 17. Based on the above data, what is the amount of working capital? a. $238.000...
10. Which of the following is the recommended approach to forecast COGS, and why? a) Forecast COGS based on revenue growth, since it provides flexibility in the model. b) Forecasting COGS based on the forecast ratio of COGS to sales allows for possible improvements in COGS relative to sales. c) Forecast COGS based on revenue growth since COGS and revenues have a direct relationship. d) Forecasting COGS based on inventory is recommended because inventory prices and COGS are correlated.
Q.12
11 Tulevasted. poutny assets and operating d) Inventory and accounts payable should be forecasted based on total assets, as these tend to scale together 12. Which of the following are true concerning forecasting interest income? I. It is a nonoperating measure. II. Its typical forecast driver is revenue. III. It is typically the same from year to year for firms that generate high cash flow. IV. The typical forecast ratio is interest income in the current period divided by...
XYZ Company Balance Sheet 12/31/XXXX Assets A Current Assets Cash Accounts Receivable Inventory Prepaid Items Other CA Total Current Assets Net Plant & Equipment Total Assets $7,500 12,100 10,400 5,900 4,300 $40,200 82,300 $122,500 XYZ Company Balance Sheet 12/31/xxxx Liabilities & Equity Current Liabilities Accounts Payable Wages Payable Notes Payable Taxes Payable Total Current Liabilities Long Term Debt Total Liabilities $7,200 3,600 5,400 4.200 $20,400 35,700 $56,100 Common Stock Retained Earnings 28,700 37,700 Total Liabilities & Equity $122,500 Homework Problem,...
117. Based on the following data, what is the amount of working capital? Accounts payable..... Accounts receivable.......... Cash............. Intangible assets.............. Inventory............ Long-term Investments............ Long-liabilities........... Short-term Investments........... Notes payablo (short-term).. Plant assets....... Prepald expenses............. $31,000 57,000 15,000 50,000 69.000 80,000 100,000 40,000 28,000 670,000 1,000 couron . . .... ............... a. $123,000 b. $151,000 c. $203,000 d. $53,000 81. Expenses are incurred a. only on rare occasions. b. to produce assets. c. to produce liabilities. d. to generate revenues.
Assume current liabilities include only items from operations (e.g., accounts payable, taxes payable). Long-term liabilities include items from financing (e.g. bonds and other long-term liabilities). Note that the company did not sell any equipment and did not borrow any additional long-term liabilities throughout the year. Prepare the cash flow statement for 2020 using the indirect method. Assume no dividends were declared or paid in 2020. Do not enter dollar signs commas in the input boxes. Use the negative sign for...
Instructions:
Complete the 2006 forecast using the assumptions below. If a
line does not have an explicit assumption, you should be able to
figure it out through logic (using the structure of the financial
statements and/or some simple math). Your forecast
should result in entries in all the green-shaded cells below.
The firm does not pay any dividends, so all net income will flow
to Net Worth on the Balance Sheet.
We will plug the cash account on the balance sheet...
16 - 17 and 18 please...
Accounts payable Accounts receivable Accrued liabilities Cash Intangible assets Inventory Long-term investments Long-term liabilities Marketable securities Notes payable (short-term) Property, plant, and equipment Prepaid expenses $ 40,000 65,000 7,000 30,000 40,000 72,000 110,000 75,000 36,000 30,000 625,000 2,000 16. Based on the above data, what is the amount of quick assets? a. $205,000 b. $203,000 c. $131,000 d. $66,000 17. Based on the above data, what is the amount of working capital? a. $238.000...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago