Answer:
$1,100
Explanation:
EBIT = Sales - Costs - Depreciation
= $9,000 - $6,000 - $1,500
= $1,500
Net income = EBIT - Tax @ 40%
= $1,500 - $600
= $900
Operating cash flow = Net income + Depreciation
= $900 + $1,500
= $2,400
Free cash flows:
= Operating cash flow - Increase in working capital - Capital expenditure
= $2,400 - $500 - $800
= $1,100
Answer: Dynamic of need
Explanation: There are two words of importance here. Dynamic and need.
Dynamic: when a person, place, or thing is energetic and active, this is know as being dynamic.
When something is dynamic it goes through a lot of process. Example: Someone with a dynamic personality is usually funny.
Need: to require something because it’s important or very essential.
Dynamic of need is when you have a active need of things, this things can be information which are very essential.
The question is incomplete as the figures are missing. The complete question is,
Fosnight Enterprises prepared the following sales budget:
Month Budgeted Sales
March $6,000
April $13,000
May $11,000
June $20,000
The expected gross profit rate is 20% and the inventory at the end of February was $7,000. Desired inventory levels at the end of the month are 30% of the next month's cost of goods sold. What are the total purchases budgeted for May?
Answer:
Purchases - May = $10960
Explanation:
To calculate the total value of purchases that are budgeted for May, we first need to calculate the cost of goods sold and the opening and closing inventory for May.
As the gross profit margin is 20%, the cost of goods sold will be 80% of sales.
Cost of goods sold for May = 0.8 * 11000 = $8800
Cost of goods sold for June = 0.8 * 20000 = $16000
Opening inventory - May = 8800 * 0.3 = $2640
Closing Inventory - May = 16000 * 0.3 = $4800
Purchases = Closing Inventory + Cost of Goods Sold for the month - Opening Inventory
Purchases - May = 4800 + 8800 - 2640
Purchases - May = $10960
Answer: To understand how businesses need money and how they can sustain themselves for a period of time to fund bills and still operate
Explanation:
Understanding the relationship between cash conversation cycle and contemporary business executive aims at knowing the business needs funds to operate and building strategic alliances, make money and propose ideas that will sustain and elevate it's strength for some time. Money is vital in running business operations, as organizations will foot bills and do some expenditure and sought out ways to earn more business.
Answer:
The cash balance on November 30 amounts to $155,700
Explanation:
Cash balance on November 30 = Beginning balance + Collection of cash from October sales + Collection of cash from November sales - Payments for October Purchases - Payments for November Purchases
where
Beginning balance is $13,700
Collection of cash from October sales = October Sales × % amount collected
= $240,000 × 70%
= $168,000
Collection of cash from November sales = November Sales × % amount collected
= $240,000 × 1.20 × 25%
= $72,000
Payments for October Purchases = October Purchases × % amount paid
= $70,000 × 65%
= $45,500
Payments for November Purchases = November Purchases × % amount paid
= $150,000 × 35%
= $52,500
Putting the values in the above formula
Cash balance on November 30 = $13,700 + $168,000 + $72,000 - $45,500 - $52,500
= $155,700
