Reference no: EM133230312
Question:
Option 1:
Kokoya's Firm calculates its free cash flow at only $2,000, which the company feels is quite low based on its historical performance and compared to others in its industry. What actions might Kokoya's Firm take to improve its overall cash flow?
Option 2:
Sarai's Sandy Beach Gear has net sales of $100,000, cost of goods sold of $60,000, and net income of $25,000. What is Sarai's profit margin?
Option 3:
(1) ABC Company has the following data for its monthly sales. Complete the % of Annual Sales row.
Monthly Income Statements
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
$40.000 142.000 547,000 556.000 160,000 571.000 $53.000 S53.000 546.000 137,000 $39,000 $31,000 5575.000
(2) Using the same data as in Problem, assume that ABC Company expects a 10% increase in sales in the coming year (10% more than the $575,000 it had in the past year). Prepare its sales forecast, assuming the company breaks down its sales down by month using the same percentages as the actual sales from the past year, which you calculated in the first problem.