ASSIGNMENT 03 BU340 Managerial Finance

ASSIGNMENT 03 BU340 Managerial Finance I Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College . 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 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 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 year?2. Delsing Plumbing Company has beginning inventory of 14,000 units, will sell 50,000 units 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 fourth quarter of the year as: ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬September (actual)……..$50,000 Fourth Quarter October…………………$40,000 November……..………..$35,000 December……………….$60,000Experience 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 ’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 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…………………………….6,000Balance SheetAssetsCash…………………$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