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Digby sold 1128 units of Deft in the current year. Assuming that Deft maintains a constant market share, all the units of Deft are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Deft will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.
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- The financial manager of Company X has just received the sales forecast for next year and it indicates that the year's sales are expected to double in the second half. What are the challenges that Company X might face in increasing its production to meet the sales projections and how can these challenges be overcome? What risks does Company X face by ramping-up production to meet the sales forecast?The table below gives a detailed forecast of the size of the market by production volume. Assume that KXS expects to capture 10.20% of the market share in 2018 and expects that percentage will increase by 0.24% per year. KXS currently has the capacity to produce a maximum of 1100 thousand units. What production capacity will KXS require each year? When will an expansion become necessary (that is, when will production volume exceed 1100 thousand units)? Year 2018 2019 2020 2021 2022 2023 Production Volume (000 units) Market Size 10,000 10,453 11,048 11,591 12,151 12,728In this exercise, we develop a model for the growth rate G, in thousands of dollars per year, in sales of a product as a function of the sales level s, in thousands of dollars.† The model assumes that there is a limit to the total amount of sales that can be attained. In this situation, we use the term unattained sales for the difference between this limit and the current sales level. For example, if we expect sales to grow to 4 thousand dollars in the long run, then 4 − s gives the unattained sales. The model states that the growth rate G is proportional to the product of the sales level s and the unattained sales. Assume that the constant of proportionality is 0.8 and that the sales grow to 2 thousand dollars in the long run. (a) Find a formula for unattained sales.(b) Write an equation that shows the proportionality relation for G.G =
- A firm is considering several policy changes to increase sales. It will increase the variety of goods it keeps in inventory, but this will increase inventory by $11,500. It will offer more liberal sales terms, but this will result in average receivables increasing by $68,000. These actions are expected to increase sales by $815,000 per year, and cost of goods will remain at 70% of sales. Because of the firm’s increased purchases for its own production needs, average payables will increase by $36,500. What effect will these changes have on the firm’s cash cycle? (Use 365 days in a year. Do not round your intermediate calculations. Round your answer to 2 decimal places.) What is the change in cash cycle? Answer in Excel and show formulas please.A firm is considering several policy changes to increase sales. It will increase the variety of goods it keeps in inventory, but this will increase inventory by $12,000. It will offer more liberal sales terms, but this will result in average receivables increasing by $69,000. These actions are expected to increase sales by $820,000 per year, and cost of goods will remain at 80% of sales. Because of the firm’s increased purchases for its own production needs, average payables will increase by $37,000. What effect will these changes have on the firm’s cash cycle? (Use 365 days in a year. Do not round your intermediate calculations. Round your answer to 2 decimal places.) Change in cash cycle daysFairchild Garden Supply expects $740 million of sales this year, and it forecasts a 20% increase for next year. The CFO uses this equatio to forecast inventory requirements at different levels of sales: Inventories = $30.2 +0.25(Sales). All dollars are in millions. The firm's cost of goods sold is expected to be 75% of sales. What is the projected inventory turnover ratio for the coming year? Do not round intermediate calculations. a. 2.20 times b. 3.52 times c. 2.64 times d. 2.93 times e. 3.09 times OO
- A firm is considering several policy changes to increase sales. It will increase inventory by $10,000 it will offer more liberal sales terms but will result in average receivables increasing by $65,000. These actions are expected to increase sales by $800,000 per year, and cost of goods will remain at 80% of sales. Because of the firm’s increased purchase of its won production needs, average payable increases by $35,000.What factors should they consider when making these decisions? What effects would they have on the firm’s cash cycle? Please select three financial ratios they should consider and whyFairchild Garden Supply expects $580 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this equation to forecast inventory requirements at different levels of sales: Inventories = $30.2 + 0.25(Sales). All dollars are in millions. The firm's cost of goods sold is expected to be 70% of sales. What is the projected inventory turnover ratio for the coming year? Please explain process and show calculations.MEINE ON The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2019 and expects that percentage will increase by 0.27% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year Production Volume (000 units) Market Size KMS's market share for 2019 is KMS's market share for 2021 is KMS's market share for 2022 is 2019 KMS's market share for 2023 is 10,412 11,570 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. KMS's market share for 2024 is 2020 10,000 units.…
- K Assume that Ideko's market share will increase by 0.40 percent per year as shown in the table, (e.g., Ideko's market share will be 10.00% in 2006). What production capacity will Ideko require each year for the next five years? When will an expansion become necessary (i.e., when will production volume exceed the current level by 50%)? e. What production capacity will Ideko require each year for the next five years? First compute the projected annual market share. Then, using these projections, calculate the projected annual production volume: (Round the volumes to one decimal place and the percentage of market share to two decimal places.) dd Sales Data Market Size (000 units) Market Share Production Volume (000 units) Data table Growth/Year 2005 4.80% 0.40% % (Click on the following icon in order to copy its contents into a spreadsheet.) - X Ideko Sales Assumptions Sales Data Growth/Year 2005 Market Size (000 units) Market Share 4.80% 10.000 0.40% 9.6% Check answerJasper Jewelry has $150 million in sales. The company expects that its sales will increase 5% this year. Jasper's CFO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is as follows: Inventories = $11 + 0.07(Sales) Given the estimated sales forecast and the estimated relationship between inventories and sales, what is your forecast of the company's year-end inventory level? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to two decimal places.$ millionROS Corporation sold 9,000 flashlight umbrellas in 2020. Their expected units to be sold this year is 10,000 units. What is the percentage change in sales volume? The variable expenses of wearable air purifiers last year amounted to Php500,000. The entrepreneur projects a 2.25% increase in sales volume. What is the projected variable expense?
