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erik [133]
2 years ago
13

Bonita Industries estimates its sales at 160000 units in the first quarter and that sales will increase by 27000 units each quar

ter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at
$2981500.

$4387000.

$5228500.

$6613938.
Business
1 answer:
drek231 [11]2 years ago
4 0

Answer:

The correct answer is $5,228,500

Explanation:

Solution

Given that:

The second Quarter sales  = 160000 + 27000 = 187000 units

The credit sales of second quarter = (sales units*sales price) *(100%- 40%) = 187000 * $25* 60% = $2,805,000.

Now,

The units of Third quarter sales = 187000 + 27000 = 214000 units

The cash Sales of third quarter = 214000*$25 *40% = $2,140,000

Thus,

The credit sales of third quarter = 214000*$25 *60% = 3,210,000

Hence,

The cash budgeted collection for third quarter = Cash sales of third quarter + (Credit sales of Third Quarter*70%) + (Credit sales of second quarter * 30%)

= $2,140,000 + ($3,210,000*70%) + ($2,805,000*30%)

= $2,140,000 + $2,247,000 + $841,500

= $5,228,500

Therefore the cash collections for the third quarter are budgeted at $5,228,500

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fiasKO [112]

Answer:

<h3>In case of b, c, d ,e volatility is less than that of original stock</h3>

Explanation:

The formula to compute the volatility of a portfolio

=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}

Here,

The standard deviation of the first stock is σ₁

The standard deviation of the second stock is σ₂

The weight of the first stock W₁

The weight of the second stock W₂

The correlation between the stock c

a) If the correlation between the stock is +1

=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}

=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times1} \\\\=0.33

Hence, the volatility of the portfolio is 0.33 0r 33%

b) If the correlation between the stock is 0.50

=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}

=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times0.5} \\\\=0.29

Hence, the volatility of the portfolio is 0.29 0r 29%

c) If the correlation between the stock is 0.00

=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}

=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times0.0} \\\\=0.23

Hence, the volatility of the portfolio is 0.23 0r 23%

d) If the correlation between the stock is -0.50

=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}

=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times-0.5} \\\\=0.17

Hence, the volatility of the portfolio is 0.17 or 17%

e) If the correlation between the stock is -1

=\sqrt{W_1^2\sigma_1^2+W_2^2\sigma_2^2+2W_1W_2\sigma_1\sigma_2*c}

=\sqrt{(0.5\times0.33)^2+(0.5\times0.33)^2+(2\times(0.5\times 0.33)\times(0.5\times0.33)\times-1} \\\\=0

Hence, the volatility of the portfolio is 0

<h3>In case of b, c, d ,e volatility is less than that of original stock</h3>

4 0
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According to the demand-pull theory, inflation is caused by:
Aliun [14]

Answer:

Understanding Demand-Pull Inflation

Demand-pull inflation is a tenet of Keynesian economics that describes the effects of an imbalance in aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up. This is the most common cause of inflation.

Explanation:

hope it helps you

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Answer: The correct option is B. Compute the costs per equivalent unit of production is the step that must be taken at the end of the costing process.

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Answer:

The answer is below

Explanation:

To be able to enjoy some small daily purchases and also make wise, long-term decisions when it comes to spending and saving, you will need to take the following steps:

1. Ensure you have a plan: this will describe your short term and long term goals about your finances

2. You can start with an 80%/20% rule. Here, you spend 80% of your income and save 20%. You can increase that later to 70/30%

3. After sometimes, invest 80% of your savings and keep 20%

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5. Enjoy yourself sometimes by spending the money for yourself adequately.

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Answer:

D

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