We shall Ignore cost of sugar cane at $0.36 per pound, as its going to be incurred for both processes.
Lets find the cash flow from not processing further:
42500 pounds Sugar @ $1.43 per Pound $60,775
Lets find the cash flow from Processing Further:
If 42500 pounds of raw sugar are processed further, we get 34000 pounds of refined sugar(42500/1.25)
34000 pounds of refined [email protected] $2.23 per pound $75280
Additional Processing charges for 42500 [email protected]$0.49 ($20825)
Total Cash Flow $54995
As can be observed, the organisation earns more when they sell raw sugar, Thus sugar should not be processed further.
Answer:
a. Total cash receipts are:
January = $332,000
February = $372,000
March = $386,000
b. Total cash payments are:
January = $335,400
February = $361,000
March = $356,500
c. Ending cash balances are:
January = $84,600
February = $95,600
March = $125,100
Explanation:
Note: The part of the data in the question are merged together. They are therefore sorted before answering the question as follows:
<u> Actual </u> <u> Forecast </u> <u>Additional Information</u>
November $280,000 January $360,000 April forecast $380,000
December 300,000 February 400,000
March 390,000
Note: See the attached excel files for the schedules receipt, schedule of payments and the cash budget.
I will fill in the right answers into the blank:
The income effect of a price change predicts that a fall in
a good's price will increase consumer purchasing power, leading to a(n) increase
in consumption of normal goods.
Asnwers:
fall; increase; increase; normal
Answer:
A. Product APEX
Explanation:
This is the correct answer.