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kvasek [131]
3 years ago
12

Batista Company management wants to maintain a minimum monthly cash balance of $19,900. At the beginning of April, the cash bala

nce is $21,100, expected cash receipts for April are $245,600, and cash disbursements are expected to be $256,200. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance? Amount to be borrowed to maintain the desired minimum monthly balance
Business
1 answer:
Tasya [4]3 years ago
5 0

Answer:

Amount to be borrowed = $9,400

Explanation:

Provided, opening cash balance = $21,100

Add: Expected cash receipts = $245,600

Less: Expected cash disbursements = $256,200

Closing balance expected = $10,500

Since net balance to be maintained in cash = $19,900

Cash to be borrowed to maintain this balance = $19,900 - $10,500 = $9,400

this amount has to be borrowed and can be borrowed at any time during the month.

Final Answer

Amount to be borrowed = $9,400

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You have just been offered a promotion that your friend and coworker, Crystal, has been hoping for. Crystal knows that you had a
zavuch27 [327]

Answer:

Indirect

Explanation:

Since in the question it is mentioned tat you just promoted also at the same time you know that Crystal would be upset at the time when she heared the promotion news but she is the good friend and need to be honest so here the  indirect strategy should be used rather using the direct strategy

Therefore the first option is correct

5 0
3 years ago
Both Bond Sam and Bond Dave have 7.3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three
Zarrin [17]

Answer:

Sam change:   -5.13%

Dave change -18.01%

Explanation:

If interest rate increase by 2%

then the YTM of the bond will be 9.3%

We need eto calcualte the present value of  the coupon and maturity of the bond at this new rate:

<em><u>For the coupon payment we use the formula for ordinary annuity</u></em>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Coupon payment: 1,000 x 7.3% / 2 payment per year: 36.50

time 6 (3 years x 2 payment per year)

YTM seiannual: 0.0465 (9.3% annual /2 = 4.65% semiannual)

36.5 \times \frac{1-(1+0.0465)^{-6} }{0.0465} = PV\\

PV $187.3546

<u><em>For the maturity we calculate usign the lump sum formula:</em></u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity: $ 1,000.00

time: 6 payment

rate: 0.0465

\frac{1000}{(1 + 0.0465)^{6} } = PV  

PV   761.32

Now, we add both together:

PV coupon $187.3546 + PV maturity  $761.3154 = $948.6700

now we calcualte the change in percentage:

948.67/1,000 - 1 = -0.051330026 = -5.13

For Dave we do the same:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 36.50

time 40

rate 0.0465

36.5 \times \frac{1-(1+0.0465)^{-40} }{0.0465} = PV\\

PV $657.5166

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   40.00

rate  0.0465

\frac{1000}{(1 + 0.0465)^{40} } = PV  

PV   162.34

PV c $657.5166

PV m  $162.3419

Total $819.8585

Change:

819.86 / 1,000 - 1 = -0.180141521 = -18.01%

6 0
3 years ago
The following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 5,000 $ 6,000 Cost of
zhuklara [117]

Answer: c. $100 favorable fixed operating cost variance

Explanation:

Cost Variance is a way of measuring the efficiency of a Company or segment in terms of how well they are managing resources and keeping with the budget.

It is calculated by subtracting the Actual balance from the Budgeted balance.

If the result is negative it is called UNFAVORABLE. If it is positive on the other hand it'll be labeled FAVORABLE.

Option C is correct because,

Budgeted balance of Fixed Cost is 500.

Actual balance is 400.

Fixed Operating Cost Variance = 500 - 400

= $100

$100 is positive so it is $100 FAVORABLE.

5 0
3 years ago
Corporate strategy helps managers understand which strategy question?.
Harman [31]

The question that corporate strategy helps managers understand is where should firm compete?

<h3>What is corporate strategy?</h3>

It should be noted that corporate strategy simply means a unique plan that helps a firm gain competitive advantage over others.

In this case, the question that corporate strategy helps managers understand is where should firm compete? This is important for the growth of the firm.

Learn more about strategies on:

brainly.com/question/24553900

4 0
2 years ago
Double counting would occur if: a imports were subtracted from GDP. b inventories were added to the GDP calculation. c used good
GrogVix [38]

Answer:

c used goods were included in the GDP calculation

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export

If used goods are included in the calculation of GDP, it would be double counting because the good would have been included in the calculation of GDP when it was newly produced.

I hope my answer helps you

8 0
3 years ago
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