Loki Labs is experience rapid growth due the increased demand for dog treat products that...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Loki Labs is experience rapid growth due the increased demand for dog treat products that are low in calories and high in nutrition. Current sales of $125,000, which increased from $90,000 the previous month, are expected to grow at a 25 percent rate. Costs of sales are stable at 75% of sales revenue. Loki's sales are for 30 percent cash with the remaining 70 percent collected the following month. Inventory-on-hand is maintained at a level to support the following month's sales. Inventory is paid in full at the time of receipt. Loki's cash balance at the start of the period was $75,000. A. For the current month and the following three months, determine Loki's Revenue Inventory Cost of sales Accounts receivable Cash collections Cash disbursements
B. Is Loki's gross profit increasing or declining?
C. Is Loki's cash flow increasing or declining?
D. What is Loki's cash balance at the end of the four-month period?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
