Baseball Card Land, Inc. sells baseball cards and other memorabilia. The company tries to maintain a cash balance equivalent to approximately 30 days of sales. Sales in 2006 amounted to $352,412 and the company expects growth in 2007 of 33% and in 2008 of 40%. Given the information provided about Baseball Card Land what is the company's 2008 projected annual sales?

Question

Quizplus · Accepted Answer

To find the 2008 projected sales, first calculate the 2007 sales by increasing the 2006 sales by 33%: $352,412 * 1.33 = $468,707.96. Then, increase the 2007 sales by 40% to find the 2008 sales: $468,707.96 * 1.40 = $656,191.14, which rounds to $656,191.