Refer to the chapter’s opening feature about Kim Jordan and her company, New Belgium Brewing Company. Her manufacturing company deals with numerous suppliers and customers.
Required
1. Identify the special journals that New Belgium Brewing would be likely to use in its operations. Also identify any subsidiary ledgers that it would likely use.
2. New Belgium Brewing hopes to double yearly sales within five years hence from its current $100 million annual amount. Assume that its sales growth projections are as follows.
|
Year |
One Year |
Two Years |
Three Years |
Four Years |
Five Years |
|
Projected growth in sales |
|
||||
|
(from the preceding year) |
0% |
20% |
15% |
25% |
20% |
Estimate New Belgium Brewing’s projected sales for each year (round to the nearest dollar). If this pattern of sales growth holds, will New Belgium Brewing achieve its goal of doubling sales in five years?