FIN 405 Strayer University Wk 10 Advanced Financial Management Questions

The Finance word problems are attached. Total of 5.

Week 10 Homework Problems

Finance 405: Advanced Financial Management

Forecasting Financial Statements: The Percent of Sales Method:

1. Your company has sales of $100,000 this year and cost of goods sold of $72,000. You forecast sales to increase to $110,000 next year. Using the percent of sales method, forecast next year’s cost of goods sold.

2. For the next fiscal year, you forecast net income of $50,000 and ending assets of $500,000. Your firm’s payout ratio is 10%. Your beginning stockholders’ equity is $300,000 and your beginning total liabilities are $120,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. What is your net new financing needed for next year?

3. This graph and questions are attached in an image

a.

b.

c.

4. You have Just landed in London with $500 in your wallet. Stopping at the foreign exchange booth, you see that pounds are being quoted at 1.95/L. For how many pounds can you exchange your $500?

– $500 divided by 1.95 pounds = 256.41 Pounds. If this is wrong, please correct.

5. Your firm needs to pay its French supplier 500,000 Crowns. If the exchange rate is 0.65 Crowns/$, how many dollars will you need to make the exchange?

– I believe the answer is $769,230.77. If this is wrong please correct.