Rotorua Products, Limited, of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: Sales Cash Accounts receivable, net Inventory Total current assets Current liabilities Required: Year 1 $ 4,621,300 $ 80,337 401,848 801,150 $ 1,283,345 $ 302,212 Year 2 $ 4,770,850 $ 98,434 429,515 871,896 $ 1,399,845 $ 336,820 Year 3 $ 5,091,630 $ 95,534 445,029 831,325 $ 1,371,888 $ 343,110 Year 4 $ 5,512,800 $ 78,780 499,454 892,668 $ 1,470,902 $ 319,457 Year 5 $ 5,673,600 $ 74,670 563,572 914,936 $ 1,553,178 $ 397,351 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Year 1 Yaer 2 Year 3 Year Year 5 Sales % Cument assets: Cash % Accounts receivable, net Inventory Total cument assets % Current Vabalties %
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Cahaya Co. does business in Malaysia and New Zealand. In attempting to assess its operating exposure, it compiled the following information: Cahaya's Malaysia sales are somewhat affected by the value of the New Zealand dollar (NZ$) because it faces competition from New Zealand exporters. It forecasts the Malaysia sales based on the following three exchange rate scenarios: Exchange Rate of NZ$: Revenue from Malaysian Business (in millions) NZ$ = MYR 2.89: 141.00 NZ$ = MYR 3.01: 105.00 NZ$ = MYR 3.13: 110.00 Its New Zealand dollar revenues on sales to New Zealand invoiced in New Zealand dollars are expected to be NZ$600 million. Its anticipated cost of materials is estimated at MYR 200 million from the purchase of Malaysian materials and NZ$100 million from the purchase of New Zealand materials. Fixed operating expenses are estimated at MYR 30 million. Variable operating expenses are estimated at 20 percent of total sales (after including New Zealand sales, translated to MYR amount). Interest expense is estimated at MYR 20 million on existing Malaysian loans, and the company has no existing New Zealand loans. a. Forecast total net cash flows for Cahaya Co. (Malaysia and New Zealand) under each of the three exchange rate scenarios. b. Explain how Cahaya's projected net cash flows are affected by possible exchange rate movements. c. Explain 2 proactive methods on how it can restructure its operations to reduce the sensitivity of its net cash flows to exchange rate movements without reducing its volume of business in New Zealand.
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A market research firm supplies manufacturers with estimates of the retail sales of their products from samples of retail stores. Marketing managers are prone to look at the estimate and ignore sampling error. An SRS of 29 stores this year shows mean sales of 70 units of a small appliance, with a standard deviation of 12.8 units. During the same point in time last year, an SRS of 11 stores had mean sales of 56.048 units, with standard deviation 3 units. An increase from 56.048 to 70 is a rise of about 20%. 1. Construct a 95% confidence interval estimate of the difference μ1 – μ2, where μ1 is the mean of this year's sales and μ2 is the mean of last year's sales. (a) < (μ1 – μ2) < (b) The margin of error is . 2. At a 0.05 significance level, is there sufficient evidence to show that sales this year are different from last year? A. No B. Yes
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