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elixir [45]
3 years ago
6

Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthl

y). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. July August September Cash receipts $ 20,000 $ 26,000 $ 40,000 Cash payments 28,000 30,000 22,000 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
Business
1 answer:
balandron [24]3 years ago
6 0

Answer and Explanation:

The preparation of cash budget for July, August and September is shown below:-

                                                         July      August        September

Beginning cash balance                  $8,400    $8,000        $8,000

Add:  

Cash receipts                                  $20,000  $26,000       $40,000  

Total cash available                         $28,400   $34000       $48000

Less:-  

Cash payments                                $28,000  $30,000       $22,000

Less:-  

Interest on bank loan                       0               $76               $117

Preliminary cash balance               $400        $3,924           $25,883

Additional loan(loan repayment)   $7,600     $4,076        -$11,676

Ending cash balance                     $8,000       $8,000         $14,207  

Loan balance                                              

Loan balance -Beginning of month      0         $7,600         $11,676  

Additional loan(loan repayment)      $7,600    $4,076      -$11,676  

loan balance-end of month                $7,600     $11,676       0

Working note

Interest = $7600 × 1% = $76    

Interest = $11,676 × 1% = $117

Therefore for making cash budget we simply added all the receipts and less all the payments.

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How the 4 factors of pruduction fit together land,capital,labor,entreprenurship​
Mrrafil [7]

Explanation:

To understand the basic philosophy behind the four factors of production

Land - Labor - Capital - Entrepreneurship

Lets consider an example:

Someday, just finishing your college, you think of starting a pizza business and you start selling pizza's one day. You might end up making a Pizza brand like Pizza Hut.

Here, in this example, to start your pizza shop, you need a place or area, this is known as Land factor. When you start making pizza, you need someone to work in that shop, (or if you doing it by yourself too) there should be at least some human being doing it, this factor is referred as Labor. To start the pizza shop, you need to buy the equipment, taking a shop on rent, or buying it, renovation of the shop etc. All of these things need, of course, Money, which is referred as Capital here. The idea you going to start this business, the courage to make it, definitely makes you an Entrepreneur, in utilizing all other factors effectively and efficiently. Therefore, this is linkage between these four factors of production, and how they fit together.

7 0
3 years ago
If an increase occurs in the demand for the output of industry A, we would expect all of the following to happen except:A. an in
ruslelena [56]

Answer:

The correct answer is option B.

Explanation:

The total revenue and profits of the industry as the price level  increases with increase in the demand.

When there is an increase in the demand for the output of an industry, that industry will increase the production to match the increase in the demand. The increase in production will cause output level to increase.

In order to produce more output the industry will require more inputs, so the demand for inputs will increase.

An increase in the demand for inputs will be accompanied by increase in their prices.

There will not be any decline in the price of inputs.

3 0
3 years ago
What does a low asset turnover compared to the industry imply? The investment in assets may be too high. Sales are higher than a
Finger [1]

Answer:

A low asset turnover compared to the industry implies Net income is low relative to the investment in assets.

Explanation:

Asset turnover is the ratio of total sales or revenue to average assets. It is a measure used to gauge how effectively companies are using their assets to generate sales.

Higher turnover ratios mean the company is using its assets more efficiently. Lower ratios mean that the company isn't using its assets efficiently and most likely have management or production problems.

The asset turnover ratio measures the value of a company's sales or revenues relative to the value of its assets

If a company has a low asset turnover ratio, it indicates it is not efficiently using its assets to generate sales.

3 0
2 years ago
Find the EAR in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded
inna [77]

EAR = (1 + periodic interest rate)^N - 1

<u>9.25 % Quarterly %</u>

EAR = (1+\frac{0.0925}{4})^{4}  - 1 = 0.09575 or 9.58%

<u>16.75 Monthly % </u>

EAR = (1+\frac{0.1675}{12})^{12}  - 1  = 0.1809766 or 18.10%

<u>15.25 Daily % </u>

EAR = (1+\frac{0.1525}{365})^{365}  - 1  = 0.1647053 or 16.47%

<u>11.25 Semiannually %</u>

EAR = (1+\frac{0.1125}{2})^{2}  - 1  = 0.115664 or 11.57%

4 0
3 years ago
7. Preparing Additional Employment Documents Although the résumé and cover message are the major tasks during your employment se
Bogdan [553]

Answer:

A list of graduation dates

A list of beginning and ending dates of employment

A card with any vital statistics that are not on your résumé

Explanation:

When providing additional information in the recruitment process, accurate and relevant information shows you are professional and have good communication skills. Making your chances of landing the job better.

Relevant information includes accurate dates of graduation and previous employment. Ensure these records are consistent accross all documents presented. Disparity will be perceived as lack of transparency.

Also a card with vital statistics not on your resume should be prepared. These can include achievements in past job roles. For example: I introduced a software that automated inquiry process and reduced cost by 30%.

3 0
3 years ago
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