单选题 Baetica Company reported the following selected financial statement data for the year ended December 31, 20×7 :

in millions		% of Sales
For the year ended December 31, 20×7 :	$ 500	100%
Sales		$ 1200000
Cost of goods sold	(300)	60%
Selling and administration expenses	(125)	25%
Depreciation		10 %
Net income	$ 25	5%
＜＞＞
As of December 31, 20×7 :
Non-cash operating working capital	$100	20%
Cash balance	$ 35	N/A

Non-cash operating working capital = Receivables + Inventory Payables
Baetica expects that sales will increase 20 percent in 20 × 8. In addition, Baetica expects to make fixed capital expenditures of $ 75 million in 20 × 8. Ignoring taxes, calculate Baetica" s expected cash balance, as of December 31,20 × 8, assuming all of the common-size percentages remain constant.

A、 $ 80 million.
B、 $ 30 million.
C、 $ 40 million.

【正确答案】 B

【答案解析】20×8 sales are expected to be $ 600 million ( $ 500 million 2007 sales×1.2 ) and 20×8 net income is expected to be $ 30 million ( $ 600 million 20×8 sales×5% ). 2008 non-cash operating working capital is expected to be $120 million ( $ 600 million 20×8 sales×20% ). The change in cash is expected to be - $ 5 million ( $ 30 million 20×8 net income + $ 60 million 20×8 depreciation - $ 2.0 million increase in non-cash operating working capital - $ 75 million 20×8 capital expenditures). The 20 x 8 ending balance of cash is expected to be $ 30 million ( $ 35 million beginning cash balance- $ 5 million decrease in cash).