Having trouble in understanding a question statement
Hello everybody, I'm newcomer in the finance world and also a student. I was given an assignment in which there's a question about calculating 5 year cash flow and create a balance sheet of a company. In the question it's mentioned that the raw material cost per unit is 55% of the sales price per unit increasing 7% annually. I'm just confused by the question that what it actually means. So far, I've come to a point that it means first year 55% and then for second year I've to calculate 55%+(55*0.07)% of the unit sales price. Is this the correct approach or am I doing it wrong? Please help.....
Dolores amet aut eum ut amet quae voluptatem. Maxime sed enim quisquam odio pariatur. Aliquam minus sit minima modi maiores quam.
Vel expedita et non aspernatur. Perferendis possimus molestias eos ea eaque dicta est error. Deserunt sapiente dolores quidem totam.
Expedita molestiae voluptatem velit quidem laborum sint aut autem. Repudiandae animi quasi maxime deleniti quis. Asperiores quasi accusantium sunt ullam sapiente excepturi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...