baldwin

Sales Rev No. of bikes sold therefore price should be price decided by high value Therefore price is low revenue recognition is not when the bicycles are shipped to the warehouse This is a consignment decrease existing sales long term relationship Industry is in slump Baldwin sales is the large real attractionare down volume no addition is fixed costs as the company is operating at 75% of the max level. Additional variable costs will be there which include materials, labor and overhead units per month = 25000/12=2k for 2 months 160000 working capital: HV: finished units at 1000*55=55k 500*70=35k finished units at Baldwin: 2k*2*70=280k 2k*92=185K net extra investment in WC =595000 net increase in WC is 715k cash available with baldwin is not even half of it

10872000 ### $110.05 92.29