Answer:
The slope of the budget constraint is -0.2. The solution is attached in the picture below
Explanation:
The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2014, bal
ance sheet. The following information is provided. 1. Commercial savings account of $698,340 and a commercial checking account balance of $830,320 are held at First National Bank of Yojimbo.2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Eastwood to write checks on this balance, $5,044,440.3. Travel advances of $195,500 for executive travel for the first quarter of next year (employee to reimburse through salary reduction).4. A separate cash fund in the amount of $1,509,300 is restricted for the retirement of long-term debt.5. Petty cash fund of $1,900.6. An I.O.U. from Marianne Koch, a company customer, in the amount of $157,850.7. A bank overdraft of $111,500 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank.8. The company has two certificates of deposit, each totaling $517,800. These CDs have a maturity of 120 days.9. Eastwood has received a check that is dated January 12, 2015, in the amount of $131,830.10. Eastwood has agreed to maintain a cash balance of $681,620 at all times at First National Bank of Yojimbo to ensure future credit availability.11. Eastwood has purchased $2,124,020 of commercial paper of Sergio Leone Co. which is due in 60 days.12. Currency and coin on hand amounted to $8,150. RequiredCompute the amount of cash and cash equivalents to be reported on Eastwood Co
1 answer:
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