Card Sharks,Inc. 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%.
Given the information provided about Card Sharks,what is the company's 2013 projected cash balance?

Question

Quizplus · Accepted Answer

To calculate the projected cash balance for 2013, we need to first find the sales figures for 2012 and 2013 using the given growth rates.

Sales in 2012 = $352,412 x 1.33 = $469,472

Sales in 2013 = $469,472 x 1.4 = $657,260

Next, we need to find the cash balance that Card Sharks aims to maintain, which is equivalent to approximately 30 days of sales.

30-day sales = $657,260 / 12 months x 30 days = $164,315

Therefore, the projected cash balance for Card Sharks in 2013 is $164,315.