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
EleoNora [17]
3 years ago
13

10-20 Royal Cigar Company is preparing a budget for cash collections. Its sales for November and December are estimated as $90,0

00 and $100,000, respectively. Past practice indicates that sales in any given month are collected as follows: month of sale, 75%; month following the month of sale, 20%; uncollectible accounts, 5%. The company allows a 2% discount for cash collections in the month of sale. What is the net cash estimated to be collected in December
Business
1 answer:
Darya [45]3 years ago
7 0

Answer:

$91,500

Explanation:

Given that cash collection pattern is as follows; month of sale, 75%; month following the month of sale, 20%; and a 2% discount for cash collections in the month of sale, it means that cash estimated for collection in December will include;

  • 75% sales in December (net of the 2% discount to be given)
  • 20% sales in November

Discount for December cash collection

= 2% * 75% * $100,000

= $1500

Hence, net cash estimated to be collected in December

= 75% * $100,000 + 20% * 90,000 - $1500

= $75,000 + $18,000 - $1500

= $91,500

You might be interested in
Is the process of presenting a message to an audience, small or large?
alex41 [277]
The pracess of presenting a message to an audience is large
5 0
3 years ago
What role has venture capitalism played in the market place?
bekas [8.4K]

Answer:

The summary of the matter in question is mentioned throughout the subsection below.

Explanation:

  • Venture Capital seems to be an age-old term although in previous centuries this same industry has changed.
  • A venture capitalist plays a very important role throughout organizing early-stage investment, attracting top management abilities candidates, promising technological start-ups, and innovative product manufacturer's professional assistance as well as other support facilities.

6 0
3 years ago
American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its target capital structure. Curren
Marat540 [252]

Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00  %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

a)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.5

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight = 0.5

WACC = 0.12(0.5) + 0.06(0.5)

WACC 9.00000%

c)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.12(0.3) + 0.06(0.7)

WACC 7.80000%

d)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

<em>Ke 0.16</em>

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.16(0.3) + 0.06(0.7)

WACC 9.00000%

3 0
3 years ago
An unfavorable fixed overhead volume variance can be due to all of the following except a.sales orders at a low level b.an incre
IgorC [24]

B is the correct answer.

An unfavourable fixed overhead volume variance can be due to all of the following except an increase in utility costs.

<h3>What is utility costs?</h3>

Utilities costs are the price associated with using services including electricity, water, waste removal, heating, and sewage. Throughout the reporting period, expenses are incurred, calculated, and accrued for, or payments are made. The term "Utility Costs" refers to all fees, surcharges, and other expenses related to providing any utilities that are necessary for the Premises, the Premises, or the Improvements, including, but not limited to, heating, ventilation, and air conditioning costs, costs associated with providing gas, electricity, and other fuels or power sources to the Premises, and costs associated with providing water and sewage services to the Premises.

To learn more about utility cost, visit:

brainly.com/question/8212077

#SPJ4

8 0
1 year ago
In the context of choosing an appropriate advertising media, at present the brands that cater to the older generations are not s
Lemur [1.5K]

Answer:

Social media is a very good way of protesting because many many people go on social media sites and they can join in and instead of being abused by other people outside you can easily make a protest on video or a website.

6 0
3 years ago
Read 2 more answers
Other questions:
  • The oldest retail setting, located in the community's downtown area, is referred to as
    7·1 answer
  • If the prepaid rent account before adjustment at the end of the month has a debit balance of $2,800, representing a payment made
    5·1 answer
  • When was the Fair Labor Standards Act (FLSA) established?​
    8·1 answer
  • The field of _______ is considered a subfield of behavioral medicine and focuses on the various mental factors that are importan
    11·1 answer
  • Suppose that in the second year her average total cost per dog is $35 and that $20 of that is associated with the variable cost.
    12·1 answer
  • You would like to buy shares of International Business Machines (BM). The current bid and ask quotes are $103.25 and $103.30, re
    7·1 answer
  • __________ states that adding more people to a late project makes the project later.
    8·1 answer
  • Which of the follow will happen if you miss a monthly credit card payment? everfy?
    14·1 answer
  • Mark is a resident sound designer in a new theater and needs to purchase equipment. What piece of sound equipment will help him
    15·2 answers
  • in the long-run which of the following is true? a. total cost equals fixed cost plus variable cost. b. the size of a firm's phys
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!