After the World Cup soccer games, Puma, the German sporting goods manufacturer, increased its end-of-year sales target by $641 million. Puma developed _____ plans with a goal that extra sales would come from new product categories the company was introducing, sale of soccer equipment, and consolidation of several subsidiaries.


Answer 1




"Planning" is a very important process in order for a business to know how it is going to allocate and manage its resources to achieve its goals in a more organized way.

Among the planning options mentioned, Puma uses "tactical plans" in order to achieve its goal. Such type of plan is focused on a specific goal. In the case of Puma, it is focused on achieving $641 million in its sales target.

Tactical plans also include "when" or the time in which goals are going to be achieved. Most of the time, goals are set from less than a year to one year. In Puma's case, it's goal is by the end of the year.

Tactical plans also state the strategies that the company will use in order to achieve its goal. In order for Puma to increase its sales, it will be introducing new products, sell soccer equipment and combine different subsidiaries. These strategies will help Puma accomplish its mission.

So, this explains the answer.

Answer 2

Final answer:

Puma implemented strategic sales plans based on new product introduction, sale of soccer equipment, and subsidiary consolidation to increase its end-of-year sales target by $641 million post World Cup soccer games.


Based on the question posed, Puma adopted strategic sales plans to increase revenue by $641 million following the World Cup soccer games. These Sales plans were driven around three major strategies; Introducing new product categories, focusing on sales of soccer equipment, and consolidating several company subsidiaries. Introduction of new products would attract more customers and help increase sales. Focusing more on sale of soccer equipment during the World cup period helps to capitalize on the increased demand for such products. Lastly, consolidation of subsidiaries can minimize costs and improve efficiency, leading to an increase in sales.

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Right Medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $15 million and actual warranty expenditures were $20,000 for the first year of selling the product. What amount (if any) should Right report as a liability at the end of the year? (Enter your answers in whole dollars.)



warranty liability $ 130,000


the warrant liability will de clared based on sales volume and the expected warranty expenditures associate with sales.

This is done to match the expenses of the warranty with the period on which are generated. If don't further period will have expenditures which related to sales of prior periods.

Having said that we proceeds:

warranty liability:

15,000,000 x 1% =         150,000

warranty expenditures (20,000)

                       net          130,000

the company still spect this sales will generate additioal warranty expenditres for 130,000 dollars. this is a liability.

Final answer:

Based on an expected 1% of sales as warranty costs, Right Medical should report a warranty liability of $130,000 at year-end, subtracting the actual costs ($20,000) from the expected costs ($150,000).


The question revolves around estimating the warranty liability that Right Medical should report at the end of the year after introducing a new implant with a five-year warranty. Based on industry standards, warranty costs are expected to be 1% of sales. The company did indeed incur actual warranty expenditures of $20,000, however, the expectation based on sales would be $150,000 (1% of $15 million). Since the actual expenditures are lower than expected, the company should report the difference between the expected cost (calculated as 1% of sales) and the actual cost as the warranty liability. Therefore, Right Medical should report a liability of $150,000 - $20,000 = $130,000 at the end of the year.

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Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Effective Decrease in Outstanding
interest interest balance balance
1/1/2021 $207,020
6/30/2021 $7,000 $6,211 $789 206,230
12/31/2021 7,000 6,187 813 205,417
6/30/2022 7,000 6,163 837 204,580
12/31/2022 7,000 6,137 863 203,717
6/30/2023 7,000 6,112 888 202,829
12/31/2023 7,000 6,085 915 201,913
6/30/2024 7,000 6,057 943 200,971
12/31/2024 7,000 6,029 971 200,000
What is the annual stated interest rate on the bonds?
a. 3.5%
b. 6%
c. 7%
d. none of the above



c. 7%


According to the given scenario, the computation of the annual stated interest rate on the bonds is shown below:-

Sated interest Rate = Cash interest ÷ Face Value of the bond × 2

= $7,000÷ $200,000 × 2

= 7%

Therefore for computing the annual stated interest rate on the bonds we simply applied the above formula. hence the correct option is c

Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $64,900 $405,000 Cost of goods sold 44,000 300,000 Selling and administrative expenses 14,000 75,000 Interest expense 650 1,800 Other income (expense) (70 ) (380 ) Income tax expense 1,300 6,500 Net income $ 4,880 $ 21,320 Balance Sheet Data (End of Year) Current assets $16,000 $45,000 Noncurrent assets 25,000 120,000 Total assets $41,000 $165,000 Current liabilities $10,000 $54,000 Long-term debt 16,800 43,000 Total stockholders’ equity 14,200 68,000 Total liabilities and stockholders’ equity $41,000 $165,000 Beginning-of-Year Balances Total assets $43,000 $162,000 Total stockholders’ equity 12,500 64,000 Current liabilities 10,000 54,000 Total liabilities 30,500 98,000 Other Data Average net accounts receivable $7,400 $3,800 Average inventory 6,800 32,800 Net cash provided by operating activities 5,500 25,500 Capital expenditures 1,600 11,500 Dividends 450 3,500 (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)Ratio TargetWal-Mart(1) Current ratio Enter a number:1 Enter a number:1(2) Accounts receivable turnover Enter a numbertimes Enter a numbertimes(3) Average collection period Enter a numberdays Enter a numberdays(4) Inventory turnover Enter a numbertimes Enter a numbertimes(5) Days in inventory Enter a numberdays Enter a numberdays(6) Profit margin Enter percentages% Enter percentages%(7) Asset turnover Enter a numbertimes Enter a numbertimes(8) Return on assets Enter percentages% Enter percentages%(9) Return on common stockholders’ equity Enter percentages% Enter percentages%(10) Debt to assets ratio Enter percentages% Enter percentages%(11) Times interest earned Enter a numbertimes Enter a numbertimes(12) Free cash flow



                     Target Wal-Mart

CURRENT RATIO  1,60   0,83  

PROFIT MARGIN 7,52% 5,26%



LONG TERM DEBT RATIO 40,98% 26,06%


RETURN ON ASSETS 11,62% 13,04%

RETURN ON EQUITY 36,55% 32,30%

DAYS IN INVENTORY  56,41   39,91  


AVERAGE COLLECTION  41,62   3,42  

ACC REC. TURNOVER  8,77   106,58  

FREE CASH FLOW  3,900   14,000  


Rory is the CFO of McIlroy Golf Designs Inc. MGDI earned $13 million last year and maintains a 30% dividend payout ratio. The company has 2 million shares of common stock outstanding and a P/E ratio of 10. What is the price per share of MGDI's stock



Price per share of MGDI's stock is $78


Earnings per share=Total earnings/Shares of common stock outstanding


PE ratio=Stock price/Earnings per share

Stock price=$6.5*12


Refer to the following list of liability balances at December 31, 2015. Accounts Payable $ 13,000
Employee Health Insurance Payable 450
Employee Income Tax Payable 400
Estimated Warranty Payable 600
Long-Term Notes Payable(Due 2019) 33,000
FICA—OASDI Taxes Payable 560
Sales Tax Payable 370
Mortgage Payable(Due 2020) 6,000
Bonds Payable(Due 2021) 53,000
Current Portion of Long-Term Notes Payable 3,500

What is the total amount of current liabilities?





Current Liabilities are those liabilities which need to be paid within on year time. These liabilities are also called short term liabilities.

Following Liabilities are considered as the current liabilities because these needs to be paid within one year.

Accounts Payable                                               $13,000

Employee Health Insurance Payable                $450

Employee Income Tax Payable                         $400

Estimated Warranty Payable                              $600

FICA—OASDI Taxes Payable                             $560

Sales Tax Payable                                               $370

Current Portion of Long-Term Notes Payable  $3,500

Total Current Liabilities                                       $18,880

Following are all the Non current liabilities balances:

Long-Term Notes Payable(Due 2019) 33,000

Mortgage Payable(Due 2020) 6,000

Bonds Payable(Due 2021) 53,000

Assume that your credit sales for March was $12,764,for April was $27,406 and May was $28,706. If credit sales are collected 55% during the month of sale, 25% the month following the sale, and 15% in the second month following the sale, what is the total expected cash collections to be received in May? Round your answer to one dollar.



Total expected cash collections for May are $24554


The May's cash collections will include collections from March's credit sales worth 15% of March's sales, collections for April's credit sales worth 25% of April's credit sales and collections worth 55% of t=May's credit sales. Thus the collections are,

Collection for March's sales = 12764 * 0.15  =  $1914.6

Collection for April's sales = 27406 * 0.25 = $6851.5

Collection for May's sales = 28706 * 0.55 = $15788.3

Total expected cash collections for May = 1914.6  +  6851.5  +  15788.3

Total expected cash collections for May = $24554.4 rounded off to $24554