Anderson Company has the following information for 2009. Total sales $783 millio
ID: 2643696 • Letter: A
Question
Anderson Company has the following information for 2009.
Total sales
$783 million
Accounts receivable (average)
$82 million
Accounts payable (average)
$75 million
Inventory (average)
$100 Million
Cost of Goods Sold
$616 million
Cost of Capital
11%
Income Tax Rate
32%
Find the NPV of one cycle of the company and the value of Anderson based on its operations.
Total sales
$783 million
Accounts receivable (average)
$82 million
Accounts payable (average)
$75 million
Inventory (average)
$100 Million
Cost of Goods Sold
$616 million
Cost of Capital
11%
Income Tax Rate
32%
Explanation / Answer
Total sales(A) $783 million Accounts receivable (average)