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IRINA_888 [86]
4 years ago
14

Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Pu

rchases for the previous November and December were $150,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Selling and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $220,000.) Interest payments of $20,000 are paid quarterly in January and April. Brandon's cash disbursements for the month of April would be:
Business
1 answer:
Morgarella [4.7K]4 years ago
6 0

Answer:

B. $254,000

Explanation:

5April Purchases X 40% =$ 56,000

March Purchases X 30% =48,000

February Purchases X 30% = 48,000

April Sales (salaries) X 10% = 30,000

May Sales (S & A Exp) X 20% = 52,000

April Interest Payment = 20,000

TOTAL$254,000

Brandon's cash disbursements for the month of April would be:$254,000

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3 0
2 years ago
Monetary neutrality means that a change in the money supply can cause _______
Kaylis [27]

Answer: does not change real variables.

Explanation:

Monetary Neutrality is the idea that a change in the money stock affects only nominal variables in the economy like wages, prices, and exchange rates, and has no effect on real variables, like real GDP, employment, and real consumption.

When money is neutral and the velocity is stable, a rise in money supply will create a proportional increase in the price level and the nominal output.

6 0
3 years ago
Expectation Hypothesis, 30 points1. Explain what is the expectation hypothesis.2. The one-year interest rate is 4% in 2019. The
Monica [59]

Answer:

Please take a look to the following explanation

Explanation:

1) The expectations hypothesis of the term structure of interest rates is the proposition that the long-term rate is determined purely by current and future expected short-term rates, in such a way that the expected final value of wealth from investing in a sequence of short-term bonds equals the final value of wealth from investing in long-term bonds.

2) For 2019, (1 + f1t) = (1 + i2t)2/(1 + i1t) = (1.05)2/(1.04)

  Or, (1 + f1t) = 1.0600

  Or, f1t = 0.06 or 6%

For 2020, (1 + f2t) = (1 + i3t)3/(1 + i2t)2 = (1.06)3/(1.05)2

  or, (1 + f2t) = 1.080

  or, f2t = 0.08 or 8%

3 0
3 years ago
Travis bought a share of stock for $31.50, the stock paid a dividend of $0.85, and Travis sold it six months later for $27.65. W
Luden [163]

Answer:

Dollar profit loss = $3

Holding period return = negative 9%

Explanation:

In order to find the dollar profit or loss return we will add the dividend and selling price because that the dividend plus the selling price is the cash that Travis receives or the positive cash and we will subtract the buying price from it because it is the negative cash flow. So we will add all the positive cash flows and subtract negative cash flow from it in order to find the dollar profit loss or return.

Selling price = 27.65

Dividend = 0.85

Selling price + Dividend= 28.5

Selling price = 31.50

Dollar profit loss or return = 28.50-31.5=-3

Loss= $3

In order to find the holding period return we will divide add the dividend and selling price , subtract buying price from it and then divide it by buying price.

(27.65+0.85-31.5)/31.5= -0.09 = -9%

Holding period return = negative 9%

5 0
3 years ago
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