Answer:
City Farm Insurance
a. City Farm cash management system has freed up $1,000,000 ($4,500,000 - $3,500,000).
b. City Farm can earn on short-term investments an amount equivalent to $21,900,00 {($1,500,000 x 365) x 4%}
Explanation:
A good cash management system combines accounting with financial management to produce financial visibility and provide business insights that can help the entity to increase its earnings with short-term investments. This is because it frees up investable cash. An entity can invest its excess cash in these instruments: money market funds, treasury bills, and certificates of deposit, offered by commercial banks.
Answer: $400
Explanation:
Cashflows from Investing Activities refer to those that have to do with the purchase or sale of fixed assets as well as other company securities.
Cashflows from investing activities here are:
= Sale of short term stock investments - Purchase of used equipment
= 3,000 - 2,600
= $400
I believe it’s collateral sorry if it’s not.
Answer:
The depreciation cost of the bus per unit is $ 1.4 which is purchased on January 1, 2019.
Explanation:
The depreciation cost per unit is computed as:
Depreciable asset = Cost - Salvage Value
= $205,860 - $7,900
= $197,960
Depreciation per unit = Depreciable asset /Useful life expected value
= $197,960 / 141,400
= $1.4
Therefore, the per unit cost is $1.4
