Nadine's Boutique has a 30 day accounts payable period. The firm has expected
quarterly sales of $1,100, $1,400, $1,700, and $2,100, respectively, for next year. The
quarterly cost of goods sold is equal to 68 percent of the next quarter's sales. The firm
has a beginning accounts payable balance of $550 as of Quarter 1. What is the amount
of the projected cash disbursements for accounts payable for Quarter 3 of the next year?
Assume a year has 360 days.
Sunset United is analyzing a proposed project. The company expects to sell 15,000
units, plus or minus 4 percent. The expected variable cost per unit is $120 and the
expected fixed costs are $311,000. The fixed and variable cost estimates are considered
accurate within a plus or minus 3 percent range. The depreciation expense is $74,000.
The tax rate is 35 percent. The sales price is estimated at $170 a unit, plus or minus 2
percent. What is the contribution margin per unit for a sensitivity analysis using a
variable cost per unit of $125?
You want to invest in a riskless project in Sweden. The project has an initial cost of
SKr4.1million and is expected to produce cash inflows of SKr1.75 million a year for
three years. The project will be worthless after three years. The expected inflation rate
in Sweden is 3.2 percent while it is 4.3 percent in the U.S. A risk-free security is paying
5.5 percent in the U.S. The current spot rate is $1 = SKr7.7274. What is the net present
value of this project in Swedish kroner? Assume the international Fisher effect applies.