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Dahasolnce [82]
3 years ago
8

Southland Company is preparing... Southland Company is preparing a cash budget for August. The company has $18,300 cash at the b

eginning of August and anticipates $123,400 in cash receipts and $137,100 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. To maintain the minimum cash balance of $10,000, the company must borrow:
Business
1 answer:
Alekssandra [29.7K]3 years ago
7 0

Answer:

The Company must borrow $5400

Explanation:

To calcualte the amount rewquired to be borrowed, we first need to calculate the cash shortage from the minimum cash requirement.

The cash at the end of the August will be,

Cash at the end = 18300 + 123400 - 137100 = $4600

The minimum requirement is $10000.

The shortage of cash is = 10000 - 4600 = $5400

Thus, the Company must borrow $5400

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5 0
1 year ago
Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contribu
elena-14-01-66 [18.8K]

Answer:

a. Karen Meyer's personal records

c. American red cross

Explanation:

The $6,000 contribution should be recorded in Karen Meyer's personal records because 1) the donation was made on her personal name 2) a donation of such size is relevant when Karen files her taxes.

The contribution should also be recorded in the American red cross records because the organization needs to clarify to the tax authorities where each sum of money it obtains comes from.

6 0
3 years ago
The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired ra
Julli [10]

Answer:

c. 1.14

Explanation:

Year         Cash Flow    PV Factor 10%     PV of Cash flows

                        ($)                                                              ($)

Year 1             180,000         0.909                     163,620

Year 2             120,000         0.826                       99,120

Year 3             100,000         0.751                       75,100

Year 4               90,000         0.683                       61,470

Year 5               90,000         0.621                       55,890

                                                                Total              =    455,200

Initial cash outflow = $400,000

Cash inflow = $455,200

So, we can calculate the present value index by using following formula,

Present value index = Cash inflow ÷ Cash outflow

= $455,200 ÷ $400,000

= 1.14

4 0
3 years ago
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3 years ago
Jacobsen Corporation prepares its financial statements applying U.S. GAAP. During its 2016 fiscal year, the company reported bef
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Answer:

Jacobsen Corporation

Income from continuing operations of $621,000 will be reported.

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The income from continuing operations is the same thing as the operating income.  It is the pre-tax income that is reported on Jacobsen Corporation's income statement for the year ended December 31, 2016.  The tax rate of 30% is applied on this figure to obtain the income tax expense for the year.  But, for Jacobsen that has other unusual items, these are taken into consideration before the income tax is imputed to obtain the after-tax income.

6 0
3 years ago
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