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aniked [119]
4 years ago
5

Black Top Express has $1,320 of cash, inventory of $10,200, net fixed assets of $33,600, accounts payable of $3,650, accounts re

ceivable of $3,780, and long-term debt of $18,100. All costs, net working capital, and fixed assets vary directly with sales. Sales are projected to increase by 4.8 percent annually. What is the pro forma net working capital for next year
Business
1 answer:
VladimirAG [237]4 years ago
8 0

Answer:

$12,209

Explanation:

The computation of the pro forma net working capital is shown below;

Add items

Cash           $1,383                     {$1,320 × (1 + 4.8%)}

Inventory    $10,690                        {$10,200 × (1+4.8%) }

Accounts receivable $3,961                {$3,780 × (1 + 4.8%)}

Less

Accounts payable -$3,825               {$3,650 × (1 + 4.8%)}

Pro forma net working capital           $12,209

We simply added the current assets and deduct the current liabilities

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What is the economic process of withdrawing investments from low profit sectors and investing in new activities?
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Answer:

Creative destruction.

Explanation:

In 1942, the term creative destruction was first to be used by the notable Austrian economist known as Schumpeter Joseph.

Creative destruction is the economic process of withdrawing investments from low profit sectors and investing in new activities.

This ultimately implies that, creative destruction is a concerted effort towards the deliberate destruction or dismantling of long standing products, processes, practices, procedures or services in order to give room for innovative ideas and an improved technique for the production (manufacturing) of goods and services. Thus, the old technology or methods of production are dismantled so as to pave way for new technologies, procedures, goods and services.

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This information would be most helpful to introduce to employees during Unfreezing stage of Lewin's change model.

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3 years ago
When gathering information, which of the following tasks might you need to preform?
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4 years ago
Which of the following costs could contain both variable and a fixed cost element with respect to the total output of the compan
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Manufacturing overhead cost refers to all costs associated with production apart from direct labor or direct materials. They are the indirect costs incurred during the manufacturing process. Manufacturing overhead costs are the production costs that can not be traced directly to the produced items.

Examples of manufacturing overhead costs include depreciation, repairs and maintenance, insurance, and heating costs. Some aspects of the costs, such as depreciation, insurance, rents for the manufacturing space, are fixed costs. They do not vary with production. Other elements of manufacturing costs, such as power, repairs, and utilities, are variable costs.

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