1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vlad [161]
2 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]2 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.  

You might be interested in
The WBS is best suited for design and construction projects that have tangible outcomes. When the final outcome of the project i
UNO [17]

Answer:

Process Breakdown Structure (PBS)

Explanation:

Since in the question it is mentioned that WBS should be best suited for design & construction projects so there is tangible results

now if the final result should be lower tangible so here the project manager should select the project breakdown structure as the process of the project should be driven via requirement of the performance but not with the plans or the blueprints

7 0
3 years ago
Mr. Smith, a cash-basis, calendar-year taxpayer, owns a duplex. He lives in one unit and rents the other unit to an unrelated in
Angelina_Jolie [31]

Answer:

Mr. Smith’s rental expense for this insurance policy is

A. $30

Explanation:

Premiun 360

N 3

year 120

From July to December 60

 

Duplex insurance e/one 30

5 0
3 years ago
Consider a mutual fund with $203 million in assets at the start of the year and with 10 million shares outstanding. The fund inv
balu736 [363]

Answer:

8.66%

Explanation:

The computation of the rate of return for the investor in the fund is as follows:

= (Net assets at the end  + dividend per share  - nav at the beginning of the year) ÷ (nav at the beginning of the year)

where,

Net assets at the end is

= $203 million + $203 million × 7% - ($217.21 million × 0.75%)

= $203 million + $14.21 million - $1.6291 million

= $217.21 million - $1.6291 million

= $215.58093 million

Dividend per share is

= $5 million ÷ 10 million shares

= 0.5

Nav at the beginning of the year is

= $203 million ÷ 10 million shares

= $20.3

Now the rate of return is

= ($215,.58093 + 0.5 - $20.3) ÷ ($20.3)

= 8.66%

6 0
2 years ago
Exxon has the following capital structure: the firm issued 6 million shares of common stock with the stock price in c), the firm
lesantik [10]

Answer: some data is missing but I was able to find it online and that helped me resolve the problem .

answer : WACC =  15.76%

Explanation:

Given that the common stock price = $9 ( as seen in option C not attached above )

value of common stock = $9 * 6 * 10^6 = $54,000,000

cost of common equity = 10.93%

current preferred stock price = $6

value of preferred stock = $6 * 1,500,000 = $9,000,000

hence the cost of the preferred equity = $4.5 / $6 = 0.75 = 75%

interest rate of debts = 6.5%

value of debit = $25,000,000

Corporate tax rate = 25%

∴ The cost of the debit after tax = 6.5% * ( 1 - 25)% = 4.88%

The Total value = value of common stock + value of preferred stock + value of debit

 = 54,000,000 + 9,000,000 + 25,000,00 = $88,000,000

<u>Finally the weighted average cost of capital ( WACC )</u>

[weight of debt * cost of debt after tax ] + [ weight of common equity * cost of common equity ] + [weight of preferred * cost of preferred ]

= [ (25/88) * 4.875 ] + [(54/88) * 10.933] + [ (9/88) * 75 ]

= 15.76%

3 0
2 years ago
Robert is a single taxpayer who has AGI of $145,000 in 2019; his taxable income is $122,000. What is his federal tax liability f
PolarNik [594]

Answer:

His tax liability for 2019 (due April 2020) is $23,359.50

Explanation:

Since Robert s a single filer, he falls under the fourth tax bracket: income between $84,201 to $160,725. His marginal tax rate is 24%, and his total taxes due are as following:

<u>tax rate</u>         <u>earnings</u>                          <u>taxes due</u>

10%            $0 – $9,875                        $987,50

12%         $9,875 – $40,125                  $3,630

22%        $40,126 – $85,525                $9,988

24%        $85,526 – $122,000              $8,754

                    total                              $23,359.50      

*Option C is the closest one, but it used the 2018 tax brackets, not the 2019.

7 0
3 years ago
Other questions:
  • According to communist theory, the value of a commodity is determined by the
    11·1 answer
  • Good cash management is an essential job of the financial manager. You own a small auto sales business called King Kars. You sto
    6·2 answers
  • Match each type of unfair business practice with its description.
    12·1 answer
  • The management at torque autos inc. and redwing automobiles inc. realized that by combining the two entities the stakeholders of
    12·1 answer
  • ABC Company is structured so that one department services the military and another department services the medical community. Wh
    6·1 answer
  • All of the following statements regarding the double-entry system are true except:__________. 1. both sides of the accounting eq
    8·1 answer
  • 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the
    14·1 answer
  • A major distinction between a conventional bank and an Islamic bank is that Islamic banks __ are allowed to charge higher intere
    10·1 answer
  • How to write a recommendation letter for a student?.
    9·1 answer
  • Banks in Ruritania have a required reserve ratio of 5%5% . Round all answers to one place after the decimal. What is the simple
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!