Percent of sales forecasting method

Assignment Help Finance Basics
Reference no: EM1344402

XDR Corp. is expecting a 10% increase in sales next year. XDR has an inventory balance of $1,000,000 and uses the percent of sales forecasting method. Which of the following could explain why the inventory forecast of $1,100,000 might be too high?

Reference no: EM1344402

Questions Cloud

Find the approximate rate of interest : Coverall Carpets is thinking to borrow $12,000 from the bank. The bank offers the choice of a 12% discount interest loan or a 10.19% add-on, one-year installment loan, payable in four equal quarterly payments.
Evaluate each projects payback period cutoff : Evaluate each project's payback period cutoff and which would you accept if William's Payback period cutoff is 2 years?
Value of levered firm : If value of a levered firm is $13,000,000, and value of corresponding unlevered firm is $12,000,000, find out the present value of financial distress costs, if the firm has $5,000,000 of debt outstanding and is in the 40 percent tax bracket.
Determine the value of a share of common stock : What is the value of a share of common stock that paid $2.00 last year, the growth rate is 8 percent, suppose the risk free rate is 4 percent, the market return is 10% and the Beta is 1.5.
Percent of sales forecasting method : Explain why the inventory forecast of $1,100,000 might be too high - Percent of sales forecasting method.
Partnership business structure over a corporation : Make an argument for using a partnership business structure over a corporation. Provide support for your argument.
Calculate the break-even point in units : Cordoba Plc has the selling value of £25 per unit, direct material cost of £10/unit, direct labour cost £6/unit and variable overheads of £4 per unit.
Role of cost accounting in business planning-control : Describe the role of cost accounting in helping management plan, make decisions, and control the organization.
Determine the unit contributions and contribution margins : Determine the unit contributions and contribution margins for each brand at the unit level

Reviews

Write a Review

Finance Basics Questions & Answers

  Finance questions

Financial Slacks. For what kinds of companies is financial slack most valuable? Are there situations in which financial slack should be reduces by borrowing and paying out the proceeds to the stockholders? Explain.

  Calculation of a proposal to buy a new milling machine

Calculation of a proposal to buy a new milling machine using NPV and What is the net cost of the machine for capital budgeting purposes

  Finance future value or present value

Calculate the equal annual deposits that you must make for the next 25 years( with the first deposit occurring one year from today) to achieve your desired retirement flow.

  Computation of value of the stock or market had no knowledge

Computation of value of the stock and which the market had no knowledge of prior to the announcement

  Computation of the projects npv

Consider you are considering a project to develop a new software package. You and your team are making a list of the revenues and costs that are relevant in the computation of the project's NPV.

  How internal selection decisions differ from external

Explain how internal selection decisions differ from external selection decisions. Write down the differences among peer ratings, peer nominations, and peer rankings. Should they be used? and how this can be employed in an organization.

  Determine the effective quarterly rate

Determine the effective quarterly rate and the nominal annual rate, What is the spreadsheet function to find the nominal annual rate above

  Affect of inflation on exchange rate

How does inflation affect the country's exchange rate? How is the equilibrium exchange rate determined and what factors affect it?

  Compute a more correct estimate of portfolio risk

Compute a more correct estimate of portfolio risk

  Mergers and team building

You've just been part of merger. You've each been chosen to head up your department and merge the two groups into a self-directed work team.

  Acquisition response-behavior and board characteristics

Please offer me some ideas on article below, paying particular attention to the methodology described, if there's any gap and also the main findings that may occur. Thank you.

  Valuation corporate bond

A $1,000 corporate bond with 10 years to maturity pays a coupon of 8% (semi-annual) and the market required rate of return is a) 7.2% and b) 10%. What is the current selling price for a) and b)?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd