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babymother [125]
3 years ago
15

Batista Company management wants to maintain a minimum monthly cash balance of $19,100. At the beginning of April, the cash bala

nce is $22,700, expected cash receipts for April are $245,800, and cash disbursements are expected to be $257,700. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance? Amount to be borrowed to maintain the desired minimum monthly balance
Business
1 answer:
klio [65]3 years ago
6 0

Answer:

The cash, if any, must be borrowed to maintain the desired minimum monthly balance is $19,100 (given in the question) and the borrowed amount  to maintain the desired minimum monthly balance is $9,000.

Explanation:

The steps for computing the borrowed amount to maintain the desired minimum monthly balance is shown below:

Step 1 : Write Beginning Cash balance

Step 2 : Add Cash receipts

Step 3 : Less Cash disbursements

Step 4 :  After cash disbursements is calculated

Step 5: Write minimum monthly cash balance

Step 6: Now, deduct Step 4 amount by Step 5 amount to calculate borrowed amount.

So,

After Cash disbursement =  Beginning Cash balance  + Cash receipts - Cash disbursements

                                          = $22,700 + $245,800 - $257,700

                                          = $10,800

The cash, if any, must be borrowed to maintain the desired minimum monthly balance is $19,100 (given in the question)

And, the borrowed amount  to maintain the desired minimum monthly balance = Monthly cash balance - After cash disbursements

             = $19,100 - $10,800

             = $9,000

Thus, the cash, if any, must be borrowed to maintain the desired minimum monthly balance is $19,100 (given in the question) and the borrowed amount  to maintain the desired minimum monthly balance is $9,000.

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Sales revenue
Ne4ueva [31]

Answer:

may be recorded before cash is collected.

Explanation:

Sales revenue "may be recorded before cash is collected."

This is according to Accrual accounting, which unlike the cash model that requires payments to be made before sales revenue is recorded.

In the Accrual accounting model, sales revenue recording is not based on cash collection before it is recorded. Here, the revenue is recorded in as much the transferred goods are made and collection of payment is determined or expected.

4 0
3 years ago
A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be run
tresset_1 [31]

Answer:

Schedule variance = $1,428,140

Schedule Performance Index (SPI) = 1.132

Cost Performance Index = 0.801

Explanation:

Planned Value = $1,414,000 + $10,494,000 + $8,494,000 * 53%

                        = $20,402,000 * 53%

                        = $10,813,060

Earned Value = $1,414,000 + $10,494,000 + $8,494,000 * 60%

                        = $20,402,000 * 60%

                        = $12,241,200

Schedule Variance = Earned value - Planned value

                                = $12,241,200 - $10,813,060

                                = $1,428,140

Schedule Performance Index (SPI)

                          = Earned value / Planned value

                          = $12,241,200 / $10,813,060

                          = 1.132

Actual Cost (AC)

                        = $1,294,000 + $8,994,000 + $4,994,000

                        = $15,282,000

Cost Performance Index (CPI)

                             = Earned value / Actual cost

                             = $12,241,200 / $15,282,000

                             = 0.801

3 0
3 years ago
Last year, a small nation with abundant forests cut down $200 worth of trees. $100 worth of trees was then turned into $150 wort
borishaifa [10]

Answer:

$400

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Inventory grew by (200 - 100) $100

$50 of value was created

total gdp = $100 + $250 + 50 = $400

4 0
3 years ago
5. June sales were $27,000, while projected sales for July and August were $51,000 and $69,000, respectively. Sales are 60% cash
liraira [26]

Answer:

$41,400

Explanation:

The computation of the expected collections for July month is shown below:

Expected Cash collection for July = June Credit sales + July Credit sales

where,

June credit sales is

= $27,000 × 40%

= $10,800

And, the July credit sales is

= $51,000 × 60%

= $30,600

So, the expected collections for July month is

= $10,800 + $30,600

= $41,400

7 0
3 years ago
Willco Inc manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget
jeka94

Answer:

Fixed costs= $31,312

Explanation:

Giving the following information:

January 30,000 $61,946

February 40,000 $74,500

March 37,500 $65,900

April 39,000 $68,750

May 42,300 $74,000

June 35,000 $64,500

T<u>o calculate the fixed costs under the high-low method, we need to use the following formulas:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (74,500 - 61,946) / (42,300 - 30,000)

Variable cost per unit= $1.021

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 74,500 - (1.021*42,300)

Fixed costs= $31,312

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 61,946 - (1.021*30,000)

Fixed costs= $31,316

8 0
3 years ago
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