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N76 [4]
3 years ago
15

Fayette Medical Clinic has budgeted the following cash flows:

Business
2 answers:
trapecia [35]3 years ago
4 0

Answer:

Cash budget

Particulars                  January      February          March

Beginning Balance  $ 16,000  $ 11,200  $ 10,000

Cash Receipts         $ 240,000  $ 232,000  $ 272,000

Cash for disbursements(y) $ 256,000  $ 243,200  $ 282,000

Less: Cash payments    

Inventories                     $ 220,000  $ 164,000  $ 190,000

S & A expenses             $ 62,000      $ 64,000  $ 54,000

Interest on line of credit   $ 800           $ 800          $ 800

Total disbursements (z)   $ 282,800  $ 228,800  $ 244,800

Excess/Deficiency x=y-z  $ (26,800)  $ 14,400  $ 37,200

Min. cash required            $ 10,000  $ 10,000  $ 10,000

Total cash needed    $ 36,800  $ (4,400)  $ (27,200)

Financing                    $ 38,000  $ -                    $ -

Interest at 1% per month                $ 380           $ 340

Balance cash before repayment  $ 14,020  $ 36,860

Repayment                           $ 4,020  $ 26,860

Ending Balance  $ 11,200  $ 10,000  $ 10,000

vodomira [7]3 years ago
4 0

Answer:

January $11,200

February $10,000

March $10,000

Explanation

CASH BUDGET FOR JANUARY

Beginning cash balanc$16,000

Add: Cash receipts 240,000

Cash available 256,000

Less: Cash payments

For inventory purchases220,000

For S&A expenses 62,000

Interest expense per month 800

Total budgeted payment 282,800

Payments minus receipts

Surplus (shortage) (26,800)

Financing Activity

Borrowing (repayment) 38000

Ending cash balance 11200

CASH BUDGET FOR FEBRUARY

Beginning cash balanc$11,200

Add: Cash receipts 232,000

Cash available 243,200

Less: Cash payments

For inventory purchases 164,000

For S&A expenses 64,000

Interest expense per month 1180

Total budgeted payment 229,180

Payments minus receipts

Surplus (shortage) 14,020

Financing Activity

Borrowing (repayment) (4,020)

Ending cash balance 10,000

CASH BUDGET FOR MARCH

Beginning cash balance $10,000

Add: Cash receipts 272,000

Cash available 282,000

Less: Cash payments

For inventory purchases 190,000

For S&A expenses 54,000

Interest expense per month 1,140

Total budgeted payment 245,140

Payments minus receipts

Surplus (shortage) 36,860

Financing Activity

Borrowing (repayment) (26,850)

Ending cash balance 10,000

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Will a sole trader ownership stop a business progress?​
SOVA2 [1]

Answer:

True

Explanation:

The given statement asserts a true claim that 'having a sole proprietor in a business mars the growth and expansion of the business' and the primary reason behind this is that his/her ability to upraise funds for further expansion is limited but the liability is unlimited. It restricts the person to enhance the business. Secondly,<u> it is extremely difficult for a single individual to manage employees, day-to-day responsibilities, paying debts, etc. and this is why the life of most of such businesses are very short except for a few</u>. Thus, the assertion is true.

8 0
3 years ago
Haulsee Inc. builds 800,000 golf carts a year and purchases the electronic motors for these carts for $370 each. Ordering costs
Allisa [31]

Answer:

4,084

Explanation:

Calculation to determine the economic order quantity (EOQ) for Haulsee

Using this formula

Economic Order Quantity (EOQ) =((2* Annual Requirement * Cost per order)/Carrying cost per unit)^ (1/2)

Let plug in the formula

Economic Order Quantity (EOQ) = ((2*800,000*540)/(370*14%))^(1/2)

Economic Order Quantity (EOQ) = 4,084 units

Therefore the economic order quantity (EOQ) for Haulsee is 4,084 units

4 0
2 years ago
Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product
Lorico [155]

A) Direct labor hrs for car wheels = estimated wheels *direct labor per wheel  

40,000 *1hr = 40,000      

   

Direct labor hrs for Truck      

10,000 * 3hr= 30,000      

   

total direct labor hrs 40,000+30,000 = 70,000  hrs

Overhead rate is total est oh cost/ total direct labor hrs    

770,000/70,000= 11.00    

B) Car truck wheels 40,000*11 =440,000

Truck wheels 10,000*11=110,000

6 0
3 years ago
1. You have a portfolio that is invested 21% in Stock A, 34% in Stock B, and 45% in Stock C. The betas of the stocks are .66, 1.
MrMuchimi

Answer:

1.

Portfolio Beta = 1.225 rounded off to 1.23

Option e is the correct answer.

2.

r = 0.13338 or 13.338% rounded off to 13.34%

Explanation:

1.

The portfolio beta is a function of the weighted average of the individual stocks' betas that form up the portfolio. To calculate the beta of a portfolio, we use the following formula,

Portfolio Beta = wA * Beta of A  +  wB * Beta of B  + ... + wN * Beta of N

Where,

w is the weight of each stock

Portfolio Beta = 0.21 * 0.66  +  0.34 * 1.21  +  0.45 * 1.5

Portfolio Beta = 1.225 rounded off to 1.23

2.

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rM is the market return

r = 0.037  +  1.22 * (0.116 - 0.037)

r = 0.13338 or 13.338% rounded off to 13.34%

3 0
2 years ago
Suppose a three period weighted average is being used to forecast demand. Weights for the periods are as follows: 0.1, 0.4 and 0
nika2105 [10]

Answer:

$143

Explanation:

The computation of the demand forecast is shown below:

= Weightage × demand observed + Weightage × demand observed +  Weightage × demand observed

= 0.1 × 120 + 0.4 × 140 + 0.5 × 150

= $12 + $56 + $75

= $143

Basically we multiplied the weighatge with its demand observed so that the demand forecast could come

7 0
3 years ago
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