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bezimeni [28]
2 years ago
12

Northern Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,

000 in cash receipts and $34,500 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:
Business
1 answer:
Nikolay [14]2 years ago
7 0

Answer:

Save additional $17,500 or reduce disbursement by that much

Explanation:

The cash budget of the company would be as follows:

May 31 owed to be bank ($15,000)

June 1 opening cash balance $12,000

June expected cash receipts $30,000

June expected cash disbursement ($34,500)

Net cash flow at the end of June (excluding bank): $7,500

Net cash flow (including bank): $7,500 - $15,000 = ($7,500)

Thus, the company will be owing the bank $7,500 by the end of June.

To maintain the minimum $10,000 positive balance with the bank, the company would need to payback the $7,500 which will be owed by the end of June, and make additional deposit of $10,000.

Total deposit required = $7,500 + $10,000 = $17,500.

This can be achieved by reducing expected disbursement by $17,500 or via other means.

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drek231 [11]

Answer:

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Explanation:

3 0
3 years ago
Every year, the U.S. Census Bureau conducts an income survey of about 60,000 American families that are carefully selected to re
natka813 [3]

Answer:Higher income families tend to have more people to support.

Explanation:

Income inequality refers to the differences in income among the populace.

The fact that a family has an high income does not suffice that all the income will be available for his consumption for he may have to give out the less privilege and this will not be captured by the census.

The fact that few move from one to another level of income to another will not disrupt census figure and this hold equally hold for in kind transfer they cannot disrupt census figure and can improve living standard.

6 0
3 years ago
Linwood is making an equipment change at his company. An old piece of equipment, with a salvage value of $60,000, is being repla
MArishka [77]

Answer:

The simple rate of return is 0.178 or 17.8%

Explanation:

From the given question, we solve for the simple rate return on this investment

Solution

Recall that, the simple rate of return is defined as:

The simple rate of return = The  operating  net cash savings /  Cash net investment

Thus,

The operating net cash savings = $164000  and

The cash net investment = $980000- $60000 = $920000

Then,

The Simple rate of return = $164000 / $920000 = 0.178 i.e. 17.8%

Therefore the simple rate of return on this investment is 0.178 or 17.8%

6 0
3 years ago
Exercise 11-17 Dropping or Retaining a Segment [LO11-2] Bed & Bath, a retailing company, has two departments—Hardware and Li
Anastasy [175]

Answer:

The financial disadvantage of discontinuing the Linens Department is a decrease of $440,000 in total net operating profit.

Explanation:

Note: The requirement of this question is omitted but it is provided before answering the question to complete question as follows:

Required:

What is the financial advantage (disadvantage) of discontinuing the Linens Department?

The explanation of the answer is now provided as follows:

Note: See the lower part of the attached excel file for Determination of the financial advantage (disadvantage) (in bold red color) of discontinuing the Linens Department.

In the attached excel file, it can be seen that discontinuing the Linens Department makes both its Sales and Variable Cost to be equal to zero while only its Fixed expenses falls from $800,000 to $340,000 which is sunk costs.

Since the elimination of the Linens Department will result in a 10% decrease in the sales of the Hardware Department, the sales of the Hardware Department after eliminating Linens Department is calculated as follows:

Sales of the Hardware Department after eliminating Linens Department = $3,000,000 * (100% - 10%) = $270,000

From the attached excel file, it can be seen that the total net operating income falls from $500,000 to $60,000 after eliminating Linens Department. This implies that the total net operating profit decreases by $440,000 (i.e. $500,000 - $60,000 = $440,000)

Therefore, the financial disadvantage of discontinuing the Linens Department is a decrease of $440,000 in total net operating profit.

Download xlsx
4 0
3 years ago
Yogen Früz is a successful chain of frozen yogurt shops originating in Canada. Archeology Investments has an agreement with the
Rus_ich [418]

Answer:

The answer is: E) franchising.

Explanation:

Franchising is a type of business where a franchisor (owner of the franchise) that produces goods or services, expands his business activities through franchisees, which are affiliated local dealers or operators. Franchises are very common specially in the food industry (McDonald's, Burger King, Subway, Pizza Hut, etc.) but are also growing in other types of businesses (ReMax, 7 Eleven, UPS Store, etc.).

4 0
2 years ago
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