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3 years ago

Which of the following listings correctly describes the order in which the four types of budgets must be prepared?

Business

1 answer:

professor190 [17]3 years ago

3 0

Answer:

b. Sales, production, direct materials purchases, cash disbursements.

Explanation:

First, you calculate your sales.

Then, the amount produced to fulfill your sales and desired inventory stocks

Based on your production, you can calculate the direct materials purchases

Lastly, with the combination of raw materials purchases, along with other information, you generate the cash disbursements budget

a.- you need to know the production to know how much direct materials do you need. INCORRECT

c.- you can't calculate how much will you pay for the direct materials without knowing how many direct materials are needed. INCORRECT

d.- you need to know the number of sales, to know how much to produce. Else you will be producing without knowing how much do you need. INCORRECT

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3 years ago

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3 years ago

Read 2 more answers

Use the following data to calculate the current ratio.

White raven [17]

Answer:

Kingbird, Inc.

Current Ratio = Current Assets/Current Liabilities

= $406,000/$147,800

= 2.75

Explanation:

a) Data and Calculations:

Kingbird, Inc. Balance Sheet December 31, 2022

Cash and cash equivalents $68000 Accounts payable $135500

Accounts receivable 103500 Salaries & wages payable 12300

Inventory 144500 Bonds payable 166000

Prepaid insurance 90000 Total liabilities $313800

Stock investments 181500

Land 195000

Buildings $225000 Common stock $239200

Less: Accumulated

depreciation (64000) 161000 Retained earnings 502500

Trademarks 112000 Total stockholders' equity $741700

Total assets $1055500 Total liabilities and stockholders'

equity $1055500

Current Assets:

Cash and cash equivalents $68,000

Accounts receivable 103,500

Inventory 144,500

Prepaid insurance 90,000

Total current assets $406,000

Current Liabilities:

Accounts payable $135,500

Salaries & wages payable 12,300

Total current liabilities $147,800

6 0

3 years ago

ou manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on Treasury bills is 6%.

serg [7]

Answer:

Reward to volatility ratio = 0.71

Explanation:

Given the expected risk premium = 10%

Standard deviation = 14%

The rate on treasury bills = 6%

The investment amount that the client chooses to invest = $60000

Expected return of equity = the expected risk premium + The rate on treasury bills

Expected return of equity = 10% + 6% = 16%

Standard deviatin = 14%

Reward to volatility ratio = (expected return - risk free rate) /standard deviation

Reward to voltality ratio = (16% -6%)/14%

Reward to voltality ratio = 0.71

4 0

3 years ago

Based on the corporate valuation model, Morgan Inc.’s total corporate value is $325 million. The balance sheet shows $90 million

Vsevolod [243]

Answer:

$25.5

Explanation:

Morgan Inc.’s total corporate value = $325 million

notes payable = $90 million

long-term debt = $30 million

preferred stock = $40 million

common equity = $100 million

shares of stock outstanding = $100 million

Market Value of company

= Market Value of debt + Market Value of preferred + Market Value of equity

$325 million = $30 million + $40 million + Market Value of equity

Market Value of equity = $325 million - $30 million - $40 million

= $255 million

Share price = $\frac{\textup{Market Value of equity}}{\textup{shares of stock outstanding}}$

= $\frac{\$255 million}{10 billion}$

= $25.5

4 0

3 years ago