who can help me solve this question or if i can find online help and pay money so that they solve my question.
Maritime Athlete Inc. is sporting goods retailer located in a city of 3,000,000.The business has a large clientele with varying interests & has experienced cash shortages in the past. It believed that next years sales will total $3,650,000 over last year.In da past 55% of all sales have been credit sales; the remaining sales were cash sales. The store only extends credit to customers with very high credit ratings. As a consequence of this strict policy very few accounts remain uncollected. For purposes of projected cash flows the company assumes that all credit sales will be collected by 90 days. The timing of collections remains constant throughout the year % collected after 30 days 70% % collected after 60 days 85% % collected after 90 days 100% Both cash & credit sales are seasonal as indicated below. Based on past performance the seasonal pattern throughout the year> Jan1-May31 20% June1-Oct31 35% Nov1-Dec31 45% Ratio is 2.5 Inventory turnover 10 Debt /equity is 1.5 Net profit to assets 6% Gross profit 18% Cost of borrowing 8% Use this information to project a cash flow statement, balance sheet and income statement for the Maritime Athlete Inc. as at year-end on the assumption that they meet industry performance levels. Assume all cash payments occur evenly throughout the year, i.e. one twelfth of the yearly amount per month. Assume that non cash expenses represent only 1% of operating expenses and that cash on hand was $3,600 at start of year. The company maintains a minimum cash balance of $1000. Speculate on the possible origins of Maritimes problems and suggest corrective measures.
Public Comments
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