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Vlad [161]
3 years ago
10

Preparation of cash budget Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2013 to make sure they can

cover their expenditures during the period. Sam and Suzy have been preparing budgets for the past several years and have been able to establish specific percentages for most of their cash outflows. These percentages are based on their take-home pay (that is, monthly utilities normally run 5% of monthly take-home pay). The information in the following table can be used to create their fourth-quarter budget for 2013.IncomeMonthly take-home pay $4,900ExpensesHousing 30%Utilities 5%Food 10%Transportation 7%Medical/dental .5%Clothing for October and November 3%Clothing for December $440Property taxes (November only) 11.5%Appliances 1%Personal care 2%Entertainment for October and November 6%Entertainment for December $1,500Savings 7.5%Other 5%Excess cash 4.5%a. Prepare a quarterly cash budget for Sam and Suzy covering the months Octoberthrough December 2013.b. Are there individual months that incur a deficit?c. What is the cumulative cash surplus or deficit by the end of December 2013?

Business
1 answer:
Alenkasestr [34]3 years ago
6 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Explanation:

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6 0
3 years ago
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 1
Keith_Richards [23]

Answer:

$259.34

Explanation:

the value of the stock can be determined using the two stage dividend discount model.

In the first stage, the present value would be determined using a discount rate of 18%.

In the second stage, the present value would be determined using a discount rate of 6%.

Values from the first and second stage would be added together to determine the value of the stock

First stage

Present value in year 1 = ($3.2 x 1.18) / 1.087 = $3.47

Present value in year 2 = ($3.2 x 1.18²) / 1.087² = $3.77

Present value in year 3 = ($3.2 x 1.18³) / 1.087³ = $4.09

Present value in year 4 = ($3.2 x 1.18^4) / 1.087^4 = $4.44

Second stage

($3.2 x 1.18^4 x 1.06) / (0.087 - 0.06) = 243.57

Value of the stock = $3.47 + $3.77 + $4.09 + $4.44 +  243.57 = $259.34

7 0
3 years ago
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Answer:

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Explanation:

Calculation for What amount should Valet report in its 2021 income statement for unrealized holding loss

Using this formula

2021 income statement for unrealized holding loss=Aggregate cost -Aggregate Fair value

Let plug in the formula

2021 income statement for unrealized holding loss=$ 180,000-$ 160,000

2021 income statement for unrealized holding loss=$20,000

Therefore the amount that Valet should report in its 2021 income statement for unrealized holding loss is $20,000

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