Petlassa is a company with a large distribution network and selling automobile tires. The company's finance manager will meet with the General Manager to discuss the financial information for the next 3 months. USD sales amount for the past month and for the next 3 months Sales forecasts are given below: Last Month: May 250,000 Predictions: June 100,000 July 150,000 August 250,000 September 100,000 the company collects 40% of its sales in cash, 60% as 1 month term. . - Purchases make up 60% of sales. One month before Petlassa's sales making the relevant purchase; but the payment is made 1 month after the purchase date. realizes. - labor costs are 5% of sales and are paid in the relevant month. - General Management expenses amount to 15% of the sales and are paid in the relevant month.
Petlassa is a company with a large distribution network and selling automobile tires.
The company's finance manager will meet with the General Manager to discuss the financial information for the next 3 months. USD sales amount for the past month and for the next 3 months
Sales
Last Month:
May 250,000
Predictions:
June 100,000
July 150,000
August 250,000
September 100,000
the company collects 40% of its sales in cash, 60% as 1 month term.
.
- Purchases make up 60% of sales. One month before Petlassa's sales
making the relevant purchase; but the payment is made 1 month after the purchase date.
realizes.
- labor costs are 5% of sales and are paid in the relevant month.
- General Management expenses amount to 15% of the sales and are paid in the relevant month.
- 10,000 USD income tax will be paid in August.
- 50,000 USD dividend payment will be made in June.
- The cash balance on June 1 is 80,000 USD and the cash balance is at the end of each month
It is required to be 60,000 USD.
All transactions take place at the end of the month. Discount rate as of today (June 1)
It was determined as 14%. What is the value of the company's cash flows?
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