Use the spreadsheet provided below to calculate the values asked. This problem set covers the material in the case albeit on a monthly basis so keep that in mind.
Q1 in M$in M$in M$ Jan.Feb.Mar.Jan.Feb.Mar.Jan.Feb.Mar. Operating Revenues1,6381,6921,748Cash and equivalents1,5651,5991,635Accounts Payable363371379 Operating Expenses:Accounts receivable1,1411,1661,192Air traffic liability502513524 Salaries, wages and benefits580599619Fuel inventory929496Accrued liabilities117120122 Aircraft fuel and taxes480496512Parts and supplies inventory102104107Curr. maturities of LTD118121123 Landing fees and other rents101104108Prepaid expenses444546Other current liabilities323333 Depreciation/amortization120124128Total Current Assets2,9443,0093,075Total Current Liabilities1,1321,1571,182 Maintenance and repairs100103107Property, Plant & Equipment 4,1584,2494,343LTD and lease obligations253259264 Other operating expenses444547Allowance for depreciation2,1212,1682,215Pension obligations163167170 Total Operating Expenses1,4251,4721,521Net PP&E2,0372,0822,128Deferred revenue252258263 Operating Income213220227Goodwill198202207Non-current operating leases401410419 Other income/(expense)222323Other assets322329336Other long term liabilities104106109 Income before taxes235243251Total Assets5,5015,6225,746Stockholder's equity3,1963,2663,338 Income tax expense444547Total Liab. and equity5,5015,6225,746 Net Income191197204 Key Ratios Jan.Feb.Mar. Days Receivable Days Inventory Operating Cycle Days Payable Cash Cycle Q2 a) Effective Annual Rate (EAR)b) Average Collection Period Notional purchase1,000.00Gross revenue10,000,000 Discount (%)1.25%Avg. receivables before new policy Days difference30 alfonso canella: alfonso canella: Difference in days from paying to get discount to paying with no discount% paying early25.0% Avg. receivables after new policy Discount ($)Change in receivables Rate (%)Cost of capital8.0% Days difference in 1 yearProjected savings in capital costs minus: discounts EARProjected savings net of discounts Gross margin20.0% Gross revenues must rise by: - in dollars - in percent v. MAR 22 No Content. Intentionally left blank.