Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

Use the spreadsheet provided below to calculate the values asked. This problem set covers the material in the case albeit on a monthly basis so keep that in mind.

1 answer below »
Q1
        in M$                    in M$                    in M$
        Jan.    Feb.    Mar.            Jan.    Feb.    Mar.            Jan.    Feb.    Mar.
    Operating Revenues    1,638    1,692    1,748        Cash and equivalents    1,565    1,599    1,635        Accounts Payable    363    371    379
    Operating Expenses:                    Accounts receivable    1,141    1,166    1,192        Air traffic liability    502    513    524
    Salaries, wages and benefits    580    599    619        Fuel inventory    92    94    96        Accrued liabilities    117    120    122
    Aircraft fuel and taxes    480    496    512        Parts and supplies inventory    102    104    107        Cu
. maturities of LTD    118    121    123
    Landing fees and other rents    101    104    108        Prepaid expenses    44    45    46        Other cu
ent liabilities    32    33    33
    Depreciation/amortization    120    124    128        Total Cu
ent Assets    2,944    3,009    3,075        Total Cu
ent Liabilities    1,132    1,157    1,182
    Maintenance and repairs    100    103    107        Property, Plant & Equipment     4,158    4,249    4,343        LTD and lease obligations    253    259    264
    Other operating expenses    44    45    47        Allowance for depreciation    2,121    2,168    2,215        Pension obligations    163    167    170
    Total Operating Expenses    1,425    1,472    1,521        Net PP&E    2,037    2,082    2,128        Defe
ed revenue    252    258    263
    Operating Income    213    220    227        Goodwill    198    202    207        Non-cu
ent operating leases    401    410    419
    Other income/(expense)    22    23    23        Other assets    322    329    336        Other long term liabilities    104    106    109
    Income before taxes    235    243    251        Total Assets    5,501    5,622    5,746        Stockholder's equity    3,196    3,266    3,338
    Income tax expense    44    45    47                            Total Liab. and equity    5,501    5,622    5,746
    Net Income    191    197    204
    Key Ratios
        Jan.    Feb.    Mar.
    Days Receivable
    Days Inventory
    Operating Cycle
    Days Payable
    Cash Cycle
Q2
    a) Effective Annual Rate (EAR)            b) Average Collection Period
    Notional purchase    1,000.00        Gross revenue    10,000,000
    Discount (%)    1.25%        Avg. receivables before new policy
    Days difference    30
alfonso canella: alfonso canella:
Difference in days from paying to get discount to paying with no discount        % paying early    25.0%
                Avg. receivables after new policy
    Discount ($)            Change in receivables
    Rate (%)            Cost of capital    8.0%
    Days difference in 1 year            Projected savings in capital costs
                minus: discounts
    EAR            Projected savings net of discounts
                Gross margin    20.0%
                Gross revenues must rise by:
                 - in dollars
                 - in percent
v. MAR 22
    No Content. Intentionally left blank.
Answered Same Day May 11, 2022

Solution

Prince answered on May 11 2022
99 Votes
Q1
        in M$                    in M$                    in M$
        Jan.    Feb.    Mar.            Jan.    Feb.    Mar.            Jan.    Feb.    Mar.
    Operating Revenues    1,638    1,692    1,748        Cash and equivalents    1,565    1,599    1,635        Accounts Payable    363    371    379
    Operating Expenses:                    Accounts receivable    1,141    1,166    1,192        Air traffic liability    502    513    524
    Salaries, wages and benefits    580    599    619        Fuel inventory    92    94    96        Accrued liabilities    117    120    122
    Aircraft fuel and taxes    480    496    512        Parts and supplies inventory    102    104    107        Cu
. maturities of LTD    118    121    123
    Landing fees and other rents    101    104    108        Prepaid expenses    44    45    46        Other cu
ent liabilities    32    33    33
    Depreciation/amortization    120    124    128        Total Cu
ent Assets    2,944    3,009    3,075        Total Cu
ent...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here