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kakasveta [241]
3 years ago
8

Blue Corporation is projecting a cash balance of $36,450 in its December 31, 2016, balance sheet. Blue’s schedule of expected co

llections from customers for the first quarter of 2017 shows total collections of $224,775. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $52,245. Other information gathered for the first quarter of 2017 is sale of equipment $3,645; direct labor $85,050, manufacturing overhead $42,525, selling and administrative expenses $54,675; and purchase of securities $17,010. Blue wants to maintain a balance of at least $30,375 cash at the end of each quarter.
Prepare a cash budget for the first quarter.
Business
1 answer:
NeX [460]3 years ago
3 0

Answer and Explanation:

The Preparation of cash budget for the first quarter is following below:-

Cash Budget  

Particulars                              Amount

Cash balance Beginning     $36,450

Add: Receipts  

Total Collection                     $224,775

Sale of equipment                  $3,645

Total receipts                          $228,420

Total cash available               $265,870

Less: Disbursements

Direct material                        $52,245

Direct labor                              $85,050

Manufacturing overhead         $42,525

Selling and

administrative overhead          $54,675

Purchase of securities              $17,010

Total Disbursements                 $251,535

Available excess available

cash over disbursements         $14,335

Financing

Add: Purchase of securities      $17,010

Less: Repayments                            -

Cash balance at ending           $31,345

So, to reach at ending balance we simply added the purchase of securities and ending cash balance.

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Answer:

(C) $200.00 gain

Explanation:

The gain or loss on sale of fixed asset is calculated as follows:

Gain\Loss = Sale Price - (Cost of asset - Accumulated Depreciation)

If the value is positive it is gain and if the value is negative it is loss.

Here, we are provided that cost of asset = $6,000

Accumulated Depreciation = $5,000

And selling Price = $1,200

Thus, Gain/Loss = $1,200 - ($6,000 - $5,000)

= $1,200 - $1,000 = $200

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Thus, the correct option is

(C) $200.00 gain

6 0
3 years ago
Open market operations are _____. the processes by which money enters into circulation the buying and selling of government secu
yarga [219]

Answer:

the processes by which money enters into circulation the buying and selling of government securities to alter the supply of money

Explanation:

Open market operations are one of the tools that the Fed uses to regulate the supply of money and credit in the economy. It entails buying or selling if securities in the market to either increase or decrease the amount of money in circulation. Open market operations can be used for either expansionary or contractionary policies.

Should the Fed observe that the economy is slowing down, it may result in buying securities and bonds from the banks.  The act of buying increases the cash available for in the banks. If the reserves are constant, it means banks will be holding excess cash.  Banks will resort to lending to firms and individuals, which increases the money supply in the market.

6 0
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Jan and Kyle sign a contract that provides if a dispute arises, they will submit to arbitration. A dispute arises, but before it
elena-14-01-66 [18.8K]

Answer:

D. Order the parties to arbitrate

Explanation:

Under an arbitration agreement, the parties to such a contract mutually agree to settling future disputes outside court.

Like every contract, such a contract is legally binding and the terms cannot be revoked by one of the parties later. The parties are bound by arbitration in such cases, as is mutually agreed initially.

As per the facts of the case, such an arbitration agreement has been entered into by Jan and Kyle, wherein it was mutually agreed to settle outside court, in the event of a dispute. When the said dispute arose, Jan filed a suit against Kyle.

In such a scenario, the court will likely D. Order the parties to arbitrate.

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3 years ago
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected retur
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Answer:

e. None of the above.

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When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due <u>due to new information related to the stock​"</u>. This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.

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Why is it important to start with temporary investments that lead to permanent investments
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These investments are commonly used when a business has a short-term excess of funds on which it wants to earn interest, but which will be needed to fund operations within the near future. These types of investments are usually very safe, but also have quite a low rate of return.

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