1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
scoray [572]
2 years ago
8

Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding

expectations for the month of June. The balance in accounts receivable as of May 31 is $56,000. Budgeted cash and credit sales for June are $145,000 and $591,000, respectively. Credit sales are made through Visa and MasterCard and are collected rapidly. Sixty five percent of credit sales is collected in the month of sale, and the remainder is collected in the following month. Ms. Bragg's suppliers do not extend credit. Consequently, she pays suppliers on the last day of the month. Cash payments for June are expected to be $710,000. Ms. Bragg has a line of credit that enables the restaurant to borrow funds on demand; however, they must be borrowed on the last day of the month. Interest is paid in cash also on the last day of the month. Ms. Bragg desires to maintain a $38,000 cash balance before the interest payment. Her annual interest rate is 10 percent. Required Compute the amount of funds Ms. Bragg needs to borrow for June. Determine the amount of interest expense the restaurant will report on the June pro forma income statement. What amount will the restaurant report as interest expense on the July pro forma income statement
Business
1 answer:
loris [4]2 years ago
8 0

Answer:

Compute the amount of funds Ms. Bragg needs to borrow for June.

  • $162,850

Determine the amount of interest expense the restaurant will report on the June pro forma income statement.

  • $0, money is borrowed on June 30th there is no interest expense during June

What amount will the restaurant report as interest expense on the July pro forma income statement

  • $1,357

Explanation:

accounts receivable May 31 is $56,000.

budgeted cash sales for June $145,000

credit sales for June $591,000

65% of credit sales are collected in current month, 35% collected next month

suppliers are paid on the last day of the month

budgeted cash payments for June 30th = $710,000

cash balance $38,000

how much money does Ms. Bragg need to borrow on June 30?

total cash collections in June = $56,000 (from previous month) + $145,000 (cash sales) + $384,150 (65% of $591,000) = $585,150

payments - cash collected = $710,000 - $585,150 = $124,850

money borrowed on June 30 = $124,850 + $38,000 (desired cash balance) = $162,850

interest expense during July = $162,850 x 10% x 1/12 = $1,357

You might be interested in
There is a connection between the content of an advertisement and the characteristics of the media used to carry the message. Th
GuDViN [60]

Answer: a. Television

b. Radio

c. Magazine

d. Newspaper

e. Internet/Mobile

f. Outdoor/Billboard

g. Direct marketing

Explanation:

Based on the different types of media available, the answers to the items below will be:

a. High cost: several channel and program options; may increase awareness of competitors' products.

The above description is for Television.

b. Relatively inexpensive; can be selectively targeted; wide reach.

The above description is for Radio.

c. Very targeted; subscribers pass along to others.

The above description is for Magazine

d. Can be expensive some markets; advertisements have short life span.

The above description is for Newspaper.

e. Can be linked to detailed content; highly flexible and interactive; allows for specific targeting.

The above description is for Internet/Mobile

f. Is not easily targeted; has placement problems in some markets; exposure time is very short.

The above description is for Outdoor/Billboards

g. Highly targeted; allows for personalization.

The above description is for direct marketing

7 0
2 years ago
Seo-yeon is beginning to wonder if she has made the right decision about purchasing a new HP laptop after she sees a friend with
tino4ka555 [31]

Answer:

postpurchase evaluation phase

3 0
2 years ago
The supply of aged cheddar cheese is inelastic, and the supply of bread is elastic. Both goods are considered to be normal goods
Kryger [21]

Answer:

D) a decrease in both the aged cheddar cheese and bread markets.

Explanation:

A 10% income tax increase will shift the aggregate demand curve to the left, reducing total demand. This should affect both necessities and luxury goods.

In this case, the demand curve for both aged cheddar cheese and bread will shift to the left, reducing the total quantity demanded at every price level. This will result in a lower equilibrium price for both goods.

3 0
3 years ago
A credit card had an Apr of 12.87% all of last year and compounded interest daily. What was the credit card's effective interest
alisha [4.7K]

Answer:

13.73%

Explanation:

Effective annual rate = (1 + APR / m ) ^m - 1

M = number of compounding = 365

(1 + \frac{0.1287}{365} )^{365} - 1

(1.000353)^{365} - 1 = 0.1373 = 13.73%

7 0
3 years ago
Which early farming tool removed the stalk and the grain from a husk of wheat? sickle scythe thresher mouldboard plow
tankabanditka [31]
A sickle because it was used during the Industrial Revolution
8 0
3 years ago
Read 2 more answers
Other questions:
  • Tyrone was recently promoted to manager. Although he used to take advice from his peers, he seems no longer willing to listen to
    15·2 answers
  • Why is infrastructure a public good
    12·1 answer
  • The grant of a patent is a limited "monopoly" and can run counter to the antitrust principle encouraging free and open markets.
    5·1 answer
  • Which of the following statements is true? Increasing dividends will always increase the stock price. Increasing dividends will
    13·2 answers
  • A(n) 11.0​%, ​25-year bond has a par value of​ $1,000 and a call price of ​$1 comma 025. ​(The bond's first call date is in 5​ y
    7·1 answer
  • Bryant leased equipment that had a retail cash selling price of $690,000 and a useful life of six years with no residual value.
    7·1 answer
  • In the context of downsizing in an organization, allowing a worker to remain in a position for a period of time after she or he
    15·1 answer
  • Individual Activity 1: Marty and the Martins
    5·2 answers
  • Barry, age 45, works for an advertising company, where he earns $75,000. Barry would like to retire at age 65. He earns 9% on hi
    7·1 answer
  • Naomi weighed 50 patients for a medical study using a scale that measures to the nearest whole pound. She then calculated the me
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!