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
Travka [436]
4 years ago
5

Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted:

(15 points, please label your answer in a cash budget format) ​ April ​ May Sales ………………………………………………. $150,000 ​ $157,500 Merchandise purchases …………………………… 107,000 ​ 112,400 Operating expenses: ​ ​ ​ Payroll …………………………………………. 13,600 ​ 14,280 Advertising ……………………………………. 5,400 ​ 5,700 Rent ……………………………………………. 2,500 ​ 2,500 Depreciation …………………………………… 7,500 ​ 7,500 End of April balances: ​ ​ ​ Cash ……………………………………………. 30,000 ​ ​ Bank loan payable ……………………………… 26,000 ​ ​ Additional data: (1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000. (2) Purchases are all on credit, with 40% paid in the month of purchase and 60% paid in the following month. (3) Operating expenses are paid in the month they are incurred. (4) A minimum cash balance of $25,000 is required at the end of each month. (5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made at the end of the month if the cash balance exceeds $25,000. Prepare the company's cash budget for May. Show the ending loan balance at May 31.
Business
1 answer:
Fudgin [204]4 years ago
8 0

Answer:

The answer is attached for ready reference

Explanation:

Please note no effect for depreciation is taken as it is non cash item.

The may ending balance is having a surplus of $103,300              

Download xlsx
You might be interested in
Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would b
Arlecino [84]

Answer: Threat

Explanation:

 The threat is one of the important factor in the SWOT analysis that is basically used for analyzing the main causes of the damages in an organization, products and the venture. The threats can be defined as external or in a negative way.

The SWOT is stand for the strengths, weaknesses, opportunities, and the threats and these are the techniques for evaluating the four main aspects of the business.

 According to the given question, the implementation of the new government regulations are reducing the availability of the raw materials and this is known as the external organization threat in the given SWOT analysis.

 Therefore, Threat is the correct answer.

3 0
3 years ago
According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if eac
zzz [600]

Answer:

the low opportunity cost producer. 

Explanation:

A person or nation has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries or people.

For example, let's assume country x produces either 10 Apples or 5 oranges in 1 hour while country y produces either 20 Apples or 2 oranges in one hour. The opportunity cost for country x of producing apples and oranges are 0.5 and 2 respectively. While for country y, the oopportunity cost of producing apples and oranges are 0.1 and 10 respectively.

Country y has an opportunity cost and comparative advantage in the production of Apples while country x has a comparative advantage in production of oranges.

I hope my answer helps you

5 0
3 years ago
A federal agency that engages primarily in commercial activities, produces revenues, and requires greater flexibility than most
jeka57 [31]

Answer:

government corporation

Explanation:

A government corporation is a government-owned firm that operates with the same integrity as a private company, except that the owner is government. Every government company is chartered by legislative act. Government corporations are typically created in markets where there is a natural monopoly, they are significant to the country's infrastructure, natural resources, and general public interest.

4 0
3 years ago
Mr. Deli wants to start a small sandwich shop in his neighborhood. He has enormous amounts of cash that he inherited from his Un
Brilliant_brown [7]

Answer:

sole proprietorship

Explanation:

A sole proprietorship is a type of business that is owned by one person

Characteristics

1. it is owned by one person

2. the business has unlimited liability

3. the business has limited access to capital

4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies

5. the business is usually not separated from the owner

8 0
3 years ago
Dunavant Service Company views share repurchases as treasury stock. Dunavant purchased shares and then later sold the shares at
Alex

Answer:

The correct answer is Retained earnings: no effect; Paid-in capital: increase

Explanation:

The nominal value of a share establishes a limit price and no company can issue its shares at a lower price, although already issued, the price of the shares is subject to the market price. When capitalization of a corporation is required, it must be defined whether the capital will be obtained from current shareholders or new shareholders. If it is one of the existing ones, there are two options: either the cash contribution is received or the system of delivering dividends payable through shares is used, in which case, it should be clarified whether the shares delivered are preferential or privileged.

4 0
3 years ago
Other questions:
  • Which of the following statements about the consideration set is false? Group of answer choices
    6·1 answer
  • Bade Midwifery's cost formula for its wages and salaries is $1,230 per month plus $240 per birth. For the month of October, the
    15·1 answer
  • (tco 6) the month of fasting, the ninth month of the muslim calendar, is known as:
    6·1 answer
  • At the beginning of the recent period, there were 900 units of product in a department, 35% completed. These units were finished
    14·1 answer
  • Alex has been charged with manslaughter and the charge is being reviewed by grand jurors. The grand jurors have determined that
    10·1 answer
  • "______ involves division of an organization's work and applies motivational theories to jobs to increase satisfaction and perfo
    8·1 answer
  • You are considering the purchase of a common stock that paid a dividend of $3.00 yesterday. You expect this stock to have a grow
    13·1 answer
  • John sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep
    7·1 answer
  • Pepper Inc.’s common stock currently sells for $15.00 per share, the company expects to pay $1.925 dividend in the coming year a
    7·1 answer
  • You have $2,000 today in your savings account. How long must you wait for your savings to be worth $4,500 if you are earning 1.2
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!