Use the "percent of sales method" of preparing pro forma financial statements to determine the
projection for next year's inventory.
Make the following assumptions: current year's sales are
$27,800,000; current year's cost of goods sold is $17,528,000; sales are expected to rise by 30%. The
firm's investment in inventory in the current year is $5,890,200. What is the projection for next
year's inventory?
A) $5,845,500 B) $7,657,260 C) $4,526,600 D) $6,981,250
B
You might also like to view...
Tucker Corp Tucker Corp has the following product information: Sales price $12 per unit Contribution margin ratio 40% Fixed costs $45,000 Refer to the Tucker Corp information above. What is the break-even point in sales dollars?
A) $45,000 B) $112,500 C) $18,000 D) $3,750
The accountant for Belden Jewelry Repair Services, Inc. forgot to make an adjusting entry for Depreciation Expense for the current year. Which of the following is an effect of this error?
A) Total assets are understated. B) Revenues are overstated. C) Total assets are overstated. D) Net income is understated.
Under what conditions will the department structure work well?
What will be an ideal response?
Several conditions must exist for market segmentation to be successful. These conditions include all of the following except
A. the total market should be divided so that segments can be compared on sales potential, costs, and profits. B. customers' needs for the product must be homogeneous. C. the company must be able to reach the chosen segment with a particular marketing mix. D. segments must be identifiable and divisible. E. at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.