Answer: $240
Explanation:
Easy multiplication just multiply the rate of income with how much your receiving in total per month. So 20 dollars times 12 months
Answer:
1. Paying somebody else and himself represent cash outflow.
2. Party bookings represents forecasted cash inflow.
Explanation:
Remember, a cash flow shows where money is coming from into the accounts of a business and where money goes to from the accounts of the business. Inflows represent credit transactions into the business account, while the outflows represents debit transactions to external sources.
Thus, paying somebody else £1200 a month to run the business as well as himself (Mr Flake) both represents outflow of cash from his ice-cream business. But the 6 more party bookings for September represents cash inflows since he will be receiving a pay from the clients.
Answer:
Petty Cash Fund $92 (debit)
Cash $92 (credit)
Explanation:
Petty Cash Custodian is granted an amount of money for petty cash expenses at the beginning of the period.
The Petty Cash Accounts depletes the Petty Cash Custodian incurs expenses during the period
<u>The following journals shows show the Petty Cash Depletes</u>
Coffee - Starbucks $13 (debit)
Supplies - Office Depot $ 46 (debit)
UPS - Delivery Costs $ 33
Petty Cash (credit) $92
The Petty Cash depleted by $92 during the period. The Petty Cash account has to be replenished by this amount from the Cash Book
Answer:
Asset X will always be preferred.
Explanation:
Sharpe Ratio of Asset = [Expected return of asset - Risk free rate] / Standard deviation of asset
For Asset X, the expected return of Asset X = 6% and Risk or Standard deviation of Asset X = 3%. Let assume that the Risk free rate = 2% (To derive our purpose).
Sharpe Ratio of Asset X = (6% - 2%)/3%
Sharpe Ratio of Asset X = 4%/3%
Sharpe Ratio of Asset X = 1.33
For Asset Y, the expected return of Asset X = 10% and Risk or Standard deviation of Asset X = 11%. Let assume that the Risk free rate = 2% (To derive our purpose).
Sharpe Ratio of Asset Y = (10% - 2%)/11%
Sharpe Ratio of Asset Y = 8%/11%
Sharpe Ratio of Asset Y = 0.727
Observation: Despite that the risk free rate is constant for both assets, Sharpe ratio is higher for Asset A, therefore, Asset A will always be preferred.