Finance assignment – down east pharmaceuticals

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Down East PharmaceuticalsKathleen Rogan of Down East Pharmaceuticals has engaged you as a consultant. Download and read the scenario. Download and use thespreadsheet for analysis.

Based on the information, do the following:

  • Develop the following first year data:
    • The company’s projected average collection period (ACP), also called days sales outstanding (DSO).
    • The company’s projected average daily sales. (Use a 360-day year.)
    • The company’s projected average receivables level.
    • The end-of-year balance sheet figures for accounts receivable and notes payable assuming that notes payable are used to finance the investment in receivables.
    • The projected annual dollar cost of carrying the receivables.
    • The receivables level at the end of March and the end of June. Note that the receivables level forecasts, and all forecasts required by the following questions, should be based on these assumptions: (a) the monthly sales forecasts given in Table 1 are realized and (b) the company’s customers pay exactly as predicted.
    • The company’s forecasted average daily sales for the first three months of operations and for the entire half year.
    • The implied ACP at the end of March and at the end of June.
    • Aging schedules at the end of March and the end of June.
  • Construct uncollected balances schedules at the end of March and at the end of June.
  • Use the uncollected balances schedule to forecast receivables levels at the ends of March and June for the second year of operations.

This data is to be presented to venture capitalists who will ask questions concerning both the interpretation of the receivables data and the sensitivity of the results to the basic assumptions. Write an interpretation of the results of your analysis.

Present your analysis as a 2-page report in a Word document formatted in APA style.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper
Receivables Management Case Study     A?© 2007 South University      
Down East Pharmaceuticals                
Select the appropriate input values and enter them in cells colored red. Once you do this, the base case solution will appear.
INPUT DATA:     KEY OUTPUT:          
Sales Forecasts:     Average Collection Period (Days):          
      End of March 39.6      
  Month Sales End of June 25.7      
  January $100,000            
  February 250,000 Receivables Balance:          
  March 400,000 End of March $330,000      
  April 600,000 End of June $300,000      
  May 450,000            
  June 300,000 Aging Schedules:          
        End of March End of June      
Assumed Collection Pattern:     0 – 30: 84.8% 70.0%      
      30 – 60: 15.2% 30.0%      
Month of sale 30.0% Over 60: 0.0% 0.0%      
One month after sale 50.0%            
Two months after sale 20.0% Payment Pattern:          
        End of March End of June      
      Total 90.0% 90.0%      
MODEL-GENERATED DATA:                
Calculation of Average     End of Month        
Collection Period (ACP):     March June        
Receivables balance   $330,000 $300,000        
Average daily sales   $8,333.33 $11,666.67        
ACP     39.6 25.7        
Aging Schedules:                
Age of                
Account End of March End of June        
in Days A/R % A/R %        
0-30 $280,000 84.8% $210,000 70.0%        
30-60 50,000 15.2% 90,000 30.0%        
60-90 0 0.0% 0 0.0%        
Total $330,000 100.0% $300,000 100.0%        
Uncollected Balances Schedules:                
End of March:                
      Accts Rec Remaining        
  Month Sales for month Rec/Sales        
  January $100,000 $0 0.0%        
  February 250,000 50,000 20.0%        
  March 400,000 280,000 70.0%        
    Total $330,000 90.0%        
End of June:                
      Accts Rec Remaining        
  Month Sales for month Rec/Sales        
  April $600,000 $0 0.0%        
  May 450,000 90,000 20.0%        
  June 300,000 210,000 70.0%        
    Total $300,000 90.0%        

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
This week's order was phenomenally written and I did not have to request any revisions! Thank you to the writer for following all instructions as written and writing a phenomenal discussion paper.
Customer 452455, February 3rd, 2023
ALL questions answered.
Customer 453625, April 7th, 2022
Customer 463097, June 23rd, 2022
The paper was beautifully written and the ppt slide exceeded my expectations. Thank you so much for assisting me with a last minute assignment.
Customer 452455, May 9th, 2023
Excellent work
Customer 456821, October 11th, 2022
Senior Services
Outstanding quality.
Customer 452441, April 13th, 2022
Social Work and Human Services
Great writer! Thanks for the revision, the paper is so much better than ones previous.
Customer 463301, November 8th, 2022
English 101
Good job
Customer 454209, June 2nd, 2020
Thank you
Customer 453993, March 21st, 2020
Always use AP Style for your headings
Customer 452441, April 11th, 2022
Healthcare & Medical
Excellent work.
Customer 452441, May 16th, 2022
Customer 452441, April 19th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat