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
sineoko [7]
2 years ago
5

Grenoble Enterprises had sales of $50,000 in March and $60,000 in April. Forecast sales for​ May, June, and July are $70,000​, $

80,000​, and $100,000​, respectively. The firm has a cash balance of $5,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Given the following​ data, prepare and interpret a cash budget for the months of​ May, June, and July.
1. The firm makes 20% of sales for​ cash, 60% are collected in the next​ month, and the remaining 20% are collected in the second month following sale. ​
2. The firm receives other income of $2,000 per month. ​
3. The​ firm's actual or expected​ purchases, all made for​ cash, are $50,000​, $70,000​, and $80,000 for the months of May through​ July, respectively. ​
4. Rent is $3,000 per month.
5. Wages and salaries are 10% of the previous​ month's sales. ​
6. Cash dividends of $3,000 will be paid in June.
7. Payment of principal and interest of $4,000 is due in June. ​
8. A cash purchase of equipment costing $6,000 is scheduled in July. ​
9. Taxes of $6,000 are due in June.
Business
1 answer:
Tanya [424]2 years ago
8 0

Answer:

I used an excel spreadsheet since there is not enough room here.

The company might want to have a minimum cash balance of $5,000 at the end of each month, but only has a cash surplus during May. The company has cash deficits for both June and July, which means that they will probably need to take a loan to keep operating.  

Download pdf
You might be interested in
Return to questionItem 1Item 1 Judy's Boutique just paid an annual dividend of $3.01 on its common stock. The firm increases its
lys-0071 [83]

Answer:

Cost of Equity = 11.30%

Explanation:

Computation Cost for Equity

Using Gordon Model

Market Price = [Dividend × (1 + Growth Rate )] / (Cost of Equity - Growth Rate)

41.08 = [$3.01 × (1 + 0.037)] / (Cost of Equity - 0.037)

41.08 = [$3.01 × (1.037)] / (Cost of Equity - 0.037)

Cost of Equity - 0.037 = $3.12 / 41.08

Cost of Equity - 0.037 = $0.076

Cost of Equity = 0.076 + 0.037

Cost of Equity = 0.1130

Cost of Equity = 11.30%

3 0
3 years ago
Research any three successful entrepreneurs of your choice.
charle [14.2K]

Answer:

1. Andrew Carnegie

You probably recognize Andrew Carnegie’s name, since he’s one of the most famous and richest industrialists of all time. However, he didn’t accumulate his wealth as a result of formal education or a business-charged background. Instead, he dropped out of school at a young age and spent the major portion of his youth performing manual labor. He was a bobbin boy at a local cotton mill and then became a telegraph messenger. It wasn’t until he taught himself how to read and entered the railroad industry that he began to build the empire that would make him (and his family) a fortune.

2. John Paul DeJoria

You may not have heard of John Paul DeJoria, but you’ve certainly indulged in some of the beauty products attached to his name. Now a multi-billionaire and one of the most accomplished entrepreneurs in modern history, DeJoria got his start as a newspaper courier. To make ends meet, he worked as a tow truck driver and a janitor. Eventually, he found his way to working at a hair-care company, where he met his future partner, Paul Mitchell. With minimal experience and a $700 loan, the duo founded a company now known as John Paul Mitchell Systems. From there, DeJoria co-founded Patron Spirits and the House of Blues.

3. Harland Sanders

If someone asked you for a loan to start a restaurant, but had no formal culinary training or experience, would you make that loan? It seems crazy to think anyone could become a successful restauranteur without a background in the industry, but that’s exactly what Harlan “Colonel” Sanders was able to do. When he started his line of Kentucky Fried Chicken restaurants, the only experience he had was cooking for his siblings as a child and working at a number of odd jobs.

6 0
3 years ago
The following information is available for Windsor, Inc. for the year ended December 31, 2017. Beginning cash balance $ 45,720 A
Diano4ka-milaya [45]

Answer:

<em>Cash generated for the year:</em>   348,793‬

ending cash:    394,513

Explanation:

<u>Operating Activities:</u>

Net Income     288,646

depreciation <u>   164,592  </u>

adjusted          453,238

change in Working capital:

AP decrease             3,759

Tax Payable               4,775

AR increase              (8,331)

Inventory increase <u>  (11,176)  </u>

total change            (10,973)

<em>cash generated from operating activities  442.265</em>

<em />

<u>Investing Activities</u>

proceed from land        35,560

purchase of building  (293,624)

<em>cash used from investing activities 258,064‬</em>

<u></u>

<u>Financing Activities</u>

issuance of shares    203,200

TS purchase                (26,416)

dividends paid             (12,192)

<em>cash generated from financing activities  164,592</em>

<em />

<em>Cash generated for the year:</em>   348,793‬

beginning cash                             45,720

ending cash                                 394,513

3 0
3 years ago
What are examples of business, management, and administration careers?
Genrish500 [490]
<h2>Answer</h2>
  • Sales Manager
  • General Manager
  • Head of Administration
<h3>Explanation</h3>

Mentioned are some of the careers that fall in the stated categories. Business would include any career related with the field of finance, marketing, supply chain, distribution and so on. Management is more connected with positions where resources has to be managed and administration is one of the types of management.

3 0
3 years ago
Read 2 more answers
Sorenson LLC, a publicly traded company, has ten members on its board. Of the ten members, six members are employees of the comp
Vesnalui [34]

Answer:

D. 7

Explanation:

Based on the information provided within the question it can be said that they need to appoint a total of 7 outside board members to achieve board independence. This is because in order to achieve board independence the board needs to consist of more members that are not employees than those who are. This is because votes need to be made in accordance to what is best for the company and shareholders, which may not always be best for the employees. Therefore when voting the employees may be biased.

8 0
3 years ago
Other questions:
  • Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of gdp. if necessar
    5·2 answers
  • Researching investments online can be valuable because:
    7·1 answer
  • Compute various manufacturing overhead rates.
    15·1 answer
  • Rusty is a project manager who has 15 employees reporting directly to him. those 15 employees are rusty's ________
    5·1 answer
  • In her work at Powered Solutions, Angelica helps business clients identify, organize, and analyze data from social media sources
    14·1 answer
  • Question 12 When you get a vaccine, it benefits others because you can't get them sick. If left to the free market, the socially
    12·1 answer
  • Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Chec
    15·1 answer
  • A change in tastes or fashions can impact..
    14·1 answer
  • As more and more firms around the world tighten their corporate governance mechanisms by setting up boards of directors made up
    10·1 answer
  • In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!