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BUSI 320 Dev Shell: BUSI 320-SummerB01-Connect exam 2 solutions
• Due on 28 Jun, 2017 12:00:00
• Asked On 21 Jun, 2017 02:49:42
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BUSI 320-SummerB01-Connect exam 2 |Rated A+
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• Submitted On 22 Jun, 2017 08:04:15
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Connect BUSI 320 1 Philip Morris is excited because sales for his clothing company are expected to double from \$510,000 to \$1,020,000 next year. Philip notes that net assets (Assets – Liabilities) will remain at 55 percent of Sales. His clothing firm will enjoy a 8 percent return on total sales. He will start the year with \$110,000 in the bank and is already bragging about the two Mercedes he will buy and the European vacation he will take. (a) Compute his likely cash balance or deficit for the end of the year. Start with beginning cash and subtract the asset buildup (equal to 55 percent of the sales increase) and add in profit. (Negative amount should be indicated by a minus sign. Omit the "\$" sign in your response.) Ending cash balance \$ (b) Does his optimistic outlook for his cash position appear to be correct? No rev: 11_18_2012 Explanation: (a) PHILIP MORRIS Beginning cash \$ 110,000 – Asset buildup (280,500 ) (55% × \$510,000) Profit 81,600 (8% × \$1...
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BUSI 320-SummerB01-Connect exam 2 solutions A+
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• Submitted On 22 Jun, 2017 02:15:46
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