Before making a final decision on which sources of funding to pursue, entrepreneurs should consider:

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:

slavikrds [6]

Answer:

Wildcat, Inc.

WILDCAT, INC. Cash Budget (in millions)

Q1 Q2 Q3 Q4

Beginning cash balance $78.00 $115.90 $48.45 $83.40

Net cash inflow 37.90 -67.45 34.95 71.05

Ending cash balance $115.90 $48.45 $83.40 $154.45

Minimum cash balance -40.00 -40.00 -40.00 -40.00

Cumulative surplus (deficit) $75.90 $8.45 $43.40 $114.45

Explanation:

a) Data and Calculations:

Q1 Q2 Q3 Q4 Q1

Sales (in millions) $165 $185 $205 $235 $180

Accounts receivable at beginning of the year = $71 million

Collection period = 45 days = 50% in each quarter and 50% in the next

Purchases for the quarter = 45% of next quarter's forecast sales

Payment period = 36 days

Wages, taxes, etc. = 20% of sales

Q1 Q2 Q3 Q4 Q1

Sales (in millions) $165 $185 $205 $235 $180

Cash collections:

50% quarter of sales 82.50 92.50 102.50 117.50

50% next quarter 71.00 82.50 92.50 102.50

Total cash collections 153.50 175.00 195.00 220.00

Purchases 83.25 92.25 105.75 81.00

Cash Payments:

80% month of purchase 66.60 73.80 84.60 64.80

20% following purchase 16.65 18.45 21.15

Total purchases payments 66.60 90.45 103.05 85.95

Wages, taxe, etc. 33 37 41 47

Interest and dividends 16 16 16 16

Capital outlay 99

Total cash disbursements 115.60 242.45 160.05 148.95

Net cash inflow 37.90 -67.45 34.95 71.05

Cash, beginning = $78 million

Desired minimum balance = $40 million

5 0

3 years ago

Notamos que, por vezes, os preços dos itens nos supermercados variam em algumas casas de centavos. Contudo, devido à proximidade

saveliy_v [14]

Answer:

People usually prefer saving their time by buying at a place where they can find all the necessity products, they pay a few cents more for a single product just because they don't have to visit another store in order to buy the remaining goods.

Explanation:

Sometimes we pay a few cents extra for a product as compared to the same product available somewhere else at a cheaper price because a great variety of product is available.

People usually prefer saving their time by buying at a place where they can find all the necessity products, they pay a few cents more for a single product just because they don't have to visit another store in order to buy the remaining goods.

6 0

3 years ago

Arn.hawkeslearning.com/portal/test/testtaketesti 00:28:59 question 23 of 29 step 1 of 2 mary ann has recently inherited $5100. w

Irina18 [472]

Mary Ann will prefer Account 1

The use of "Compounding interest rate," which involves adding interest to the deposit's principal amount, is the main topic of discussion here.

Mary Ann's balance from account 2 over 3.7 years is $6,261.37

The below calculation is to derive maturity and value when an annual rate of 5.5% is applied.

Principal = $5,100

Annual rate = 5.5% semi-annually for 1 years

A = P(1+r/m)^n*t where n=1, t=2

A = 5,400*(1 + 0.031/2)^1*2

A = 5,400*(1.0155)^2

A = 5,400*1.03124025

A = 5568.69735

A = $5,568.70.

In conclusion, the accrued value she will get years one year for this account is $5,568.70,

When the amount compounds continuously at a rate of 3.4% per year, the maturity value is determined by the calculation below.

Principal = $5,400

Annual rate = 3.4% continuously

A = P.e^rt where n=1

A = 5,400 * e^(0.04*1)

A = 5,400 * 1.04081077419

A = 5620.378180626

A = $5,620.39.

In conclusion, the accrued value she will greater one year for this account is $5,620.39.

Referring to how much would Mary Ann's balance be from Account 2 over 3.7 years. It is calculated as follows:

Annual rate = 3.4% continuously

A = P.e^rt where n=3.7

A = 5,400 * e^(0.04*3.7)

A = 5,400 * e^0.148

A = 5,400 * 1.15951289636

A = 6261.369640344

A = $6,261.37

Therefore, the accrued value she will get after 3.7 years for this account is $6,261.37

Learn more about the Annual rate here

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3 0

2 years ago

Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR

hodyreva [135]

Answer:

C) 0.5 USD

Explanation:

Swap is an arrangement in which two parties exchange their interest rates for mutual benefit. One party may receive fixed rate and other will receive floating rate based on LIBOR. In the given scenario the swap agreement was originated when the LIBIOR was 3%. The fixed rate was set to be at 4% so the net gain at the time of inception was 1%. When LIBOR increased after six month the net gain declined to only 0.5%.

4 0

3 years ago

Deep mines has 14 million shares of common stock outstanding with a beta of 1.15 and a market price of $42 a share. there are 90

Ugo [173]

Check the attached file for the answer.

3 0

3 years ago