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RUDIKE [14]
2 years ago
8

Western Company is preparing a cash budget for June. The company has $12,000 in cash at the beginning of June and anticipates $3

0,000 in cash receipts and $34,500 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:
a. Borrow $4,500.
b. Borrow $2,500.
c. Borrow $10,000.
d. Repay $7,500.
e. Repay $2,500.
Business
1 answer:
Leto [7]2 years ago
8 0

Answer:

b. Borrow $2,500

Explanation:

Preliminary balance = $12,000 + 30,000 - $34,500 = $7,500

Amount to borrow = Minimum cash balance - Preliminary balance = $10,000 - $75,000 = $2,500

Therefore, to maintain the $10,000 required balance, during June the company must $2,500.

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A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest
Yuki888 [10]

Answer:

Present Value of the loan = $19999.36 rounded off to $20000

Explanation:

The present value of loan will comprise of the present value of the principal amount of loan plus the present value of the interest that the loan will charge for the 3 year time period for which it is outstanding. As the interest payments are fixed and occur after equal intervals of time, they are considered an annuity.

To calculate the present value of the loan, we must discount the interest payments using the present value factor of annuity given in the question as 2.5771 and we must discount the principal to present value using the present value factor given in question as 0.7938.

We will first calculate the annual interest payment on loan.

Annual Interest payment = 20000 * 0.08 = 1600

Present value of the Interest payment - annuity = 1600 * 2.5771

Present value of the Interest payment - annuity = $4123.36

Present value of the Principal loan = 20000 * 0.7938

Present value of the Principal loan = $15876

Present Value of the loan = 15876 + 4123.36

Present Value of the loan = $19999.36 rounded off to $20000

7 0
2 years ago
Imagine that your country takes in $100 million each year in tax money but chooses to spend $500 million on various services it
Ivan
Answer: B


Explanation:


I took the test
5 0
2 years ago
Read 2 more answers
Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is
elena-s [515]

Answer: $‭46,950‬

Explanation:

a. All sources of income should be included including illegal ones.

b. Gain = 1,000 (32 - 31)

= $1,000

c. Gain = Amount received - Amount paid apportioned per year

=  25,000 - (210,000/20)

= 25,000 - 10,500

= $14,500

d. Not included as disability benefits are not included.

e. The $300 is deductible but the $200 that went towards car payment is not.

f. Taxation principles require that the person taxed should be the person earning the income so Ken will not be charged on the $1,100

g. The relevant figure here is the tax benefit before the $610 refund.

Ken claimed $6,250 in itemized deduction but the standard deduction is $6,200. Ken gained;

= 6,250 - 6,2000

= $50

h. The $30,000 is included as Ken earned it.

Gross Income = 1,200 + 1,000 + 14,500 + 200 + 50 + 30,000

= $‭46,950‬

3 0
3 years ago
Assume the following​ amounts: Total fixed costs Selling price per unit Variable costs per unit If sales revenue per unit increa
sineoko [7]

Answer:

The correct option is <u>c. 129,000</u>.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Assume the following amounts:

Total fixed costs. $15,000

selling price per unit. $19

variable costs per unit. $12

if sales revenue per unit increases to $21 and 16,000 units are sold what is the operating income?

a 159,000

b. 336,000

c. 129,000

d. 144,000

The explanation to the answer is now provided as follows:

Since sales revenue per unit increases to $21, we use it as the selling price and proceed as follows:

Computation of Operating Income

<u>Particular                                              Amount ($) </u>

Sales revenue (16,000 * $21)                336,000

Variable cost (16,000 * $12)                <u>  (195,000)  </u>

Contribution                                            144,000

Fixed cost                                             <u>   (15,000)  </u>

Operating income                             <u>    129,000    </u>

Therefore, the correct option is <u>c. 129,000</u>. That is, operatin income is $129,000.

5 0
3 years ago
Which of the following evaluation tools can be used to find the percentage of the atoll amount the sales person plan is projecte
boyakko [2]

Answer:

I think its b let me know if im wrong!

6 0
2 years ago
Read 2 more answers
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