Refine Cash Balance and Consider Capital Structure
Consider the following actual FY2017 data and a forecast of FY2018 selected balance sheet and income statement numbers.

$ millions FY2017 Actual FY2018 Est.
Net sales $29,009 $32,102
Total assets 14,592 16,051
Total liabilities 8,755 9,923
Total equity 5,837 6,128
Cash 2,918 4,378
Marketable securities 730 730
Total liabilities (inc. long-term debt) 8,755 9,923
Treasury stock (2,189) (2,627)

Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold. if the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the operating cycle be?

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?