Reference no: EM133232586
Assignment - Choose one question and answer it.
Question 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?
Question 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?
Question 3 - (1) ABC Company has the following data for its monthly sales. Complete the % of Annual Sales row.
ABC Company Monthly Income Statements
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|
Jan
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Feb
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Mar
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Apr
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May
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Jun
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Jul
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Aug
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Sep
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Oct
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Nov
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Dec
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Total
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Gross Sales % of Annual Sales
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$40,000
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42,000
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47,000
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56,000
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60,000
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71,000
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53,000
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53,000
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46,000
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37,000
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39,000
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31,000
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$575,000
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(2) Using the same data as in Problem 1, 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.