Final answer:
Card Sharks, Inc.'s projected year-end cash balance for 20x2 is calculated by first determining the projected sales for 20x2 and then finding the daily sales value. Multiplying the daily sales by 30 (the number of days' cash they maintain), we find the year-end cash balance to be approximately $38,524.
Step-by-step explanation:
The correct option : d
To calculate Card Sharks' projected year-end cash balance for 20x2, first, we need to determine the total sales for that year. Since the sales for 20x1 were $352,412 and the expected growth for 20x2 is 33%, we apply the growth rate to the previous year's sales:
20x2 Sales = 20x1 Sales × (1 + Growth Rate) = $352,412 × (1 + 0.33) = $352,412 × 1.33 = $468,708.36.
Now, we find the daily sales amount by dividing the total sales by the number of days in a year (assume 365 days):
Daily Sales = $468,708.36 / 365 = $1,284.13.
Finally, we multiply the daily sales by the number of days' worth of cash balance they want to maintain, which is 30 days:
Year-End Cash Balance = Daily Sales × 30 = $1,284.13 × 30 = $38,523.90,