70.2K

Verified Solution

Link Copied!

The Sharks gave you the $1,000,000 in funding you asked for in exchange for 25% ownership of your companys profits. You issued 26,000 \$1-par shares to the Sharks and updated your additional paid-in capital by the excess received. The sharks have a 9\% Required Rate of Return on their investment (needed for Milestone 3). All the following are complete by March 31, 2023: 1) your shark funding has been received, 2) new capital investments have been purchased and set up, and 3) additional labor has been hired and trained. SALES: a. All Sales are credit sales. b. In 2023, your expanded operations enable Production and Sales to double your 2022 sales (due to selling more windows to the commercial builders and increasing the sale price per window). c. Quantity of windows sold is expected to increase 25% every year from 2024 on. d. Due to inflation and demand, at the start of 2024 you increase your selling price per window by 9%. The Sharks gave you the $1,000,000 in funding you asked for in exchange for 25% ownership of your companys profits. You issued 26,000 \$1-par shares to the Sharks and updated your additional paid-in capital by the excess received. The sharks have a 9\% Required Rate of Return on their investment (needed for Milestone 3). All the following are complete by March 31, 2023: 1) your shark funding has been received, 2) new capital investments have been purchased and set up, and 3) additional labor has been hired and trained. SALES: a. All Sales are credit sales. b. In 2023, your expanded operations enable Production and Sales to double your 2022 sales (due to selling more windows to the commercial builders and increasing the sale price per window). c. Quantity of windows sold is expected to increase 25% every year from 2024 on. d. Due to inflation and demand, at the start of 2024 you increase your selling price per window by 9%

Answer & Explanation Solved by verified expert

See Answer