Card Sharks, Inc. sells baseball cards and other memorabilia. The company tries to maintain a cash balance equivalent to approximately 30 days of sales. Sales in 2011 amounted to $352,412 and the company expects growth in 2012 of 33% and in 2013 of 40%.
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Given the information provided about Card Sharks, what is the company's 2013 projected annual sales?

Question

Quizplus · Accepted Answer

To find the projected annual sales for 2013, first calculate the sales for 2012 by applying the expected growth of 33% to the 2011 sales: $352,412 * 1.33 = $468,708. Then, calculate the 2013 sales by applying the expected growth of 40% to the 2012 sales: $468,708 * 1.40 = $656,191.