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DIA [1.3K]
3 years ago
6

JohnBoy Industries has a cash balance of $54,000, accounts payable of $134,000, inventory of $184,000, accounts receivable of $2

19,000, notes payable of $129,000, and accrued wages and taxes of $41,500. How much net working capital does the firm need to fund?
Business
1 answer:
Anettt [7]3 years ago
5 0

Answer:Net working capital = $152,500

Explanation:

Net working capital = CA– CL

Where CA= Current Assets = Cash + Inventory + Accounts Receivable

and CL= Current Liabilities= Account payable + Notes payable + accrued wages and taxes

CA=$54, 000 + $184,000 + $ 219,000 =$457,000

Current liabilities = Account payable + Notes payable + accrued wages and taxes

CL = $134,000 + $129,000 + $41,500 = $304,500

Net working capital = Current assets – Current liabilities

Net working capital = $457,000 – $304,500=  $152,500

Net working capital = $152,500

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Answer:

C

Explanation:

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Transactions The selected transactions below were completed by Cota Delivery Service during July: Indicate the effect of each tr
Bezzdna [24]

Answer & Explanation:

1.- Increase    in assets and equity

(cash is asset and common stockequity)

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(one asset cash is rtaded for another, supplies)

3.- Decrease in Assets and Equity

(expense decrease the cash (assets) and equity (income))

4.- Decrease in Assets and Equity

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(cash increase equity increase (service revenue))

6.- Increase   in assets and equity

(account receivable increase equity increase (service revenue))

7.- Decrease  in Assets and Liablity

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8.- no effect

(one asset increases cash. Another decreases, account receivable)

9.- Decrease in Assets and Equity

(expense decrease the suppplies (assets) and equity (income))

10.- Decrease in Assets and Equity

(less cash less retained earnings)

5 0
3 years ago
What tends to happen to the accuracy of our savings goals as our investment horizon becomes longer?
SIZIF [17.4K]

We are less able to accurately estimate the amount we will need tends to happen to the accuracy of our savings goals as our investment horizon becomes longer.

Secured Goals is part of an account that is structured to save only your money and save that as well, all the difference is this is a great dividend saving account to protect against accidental spending. When you open a protected savings fund, a savings goal is automatically created or credit installments are created only at the end of each month.

Setting goals helps investment horizon you break down the saving process to make it easier and more convenient. Setting goals saves time.

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6 0
1 year ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

Answer:

The correct answer is letter "B": 180.

Explanation:

During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).

8 0
3 years ago
1.Danner Company expects to have a cash balance of $45,000 on January 1, 2017. Relevant monthly budget data for the first 2 mont
Nat2105 [25]

Answer:

\left[\begin{array}{ccc}&January&February\\$beginning&45000&27500\\$receipts&97000&150000\\$disbursement&-114500&-163500\\$interest&0&0\\$subtotal&27500&14000\\$minimun&20000&20000\\$Financing&&\\$beginning&0&0\\$payment/loan&0&6000\\$ending&0&6000\\&&\\$ending cash&27500&20000\\\end{array}\right]

Explanation:

On January we collect the 85,000 from revenues and the 12,00 form marketable securities.

Then, we add up each disbursement:

Materials 50000

Labor       30000

Overhead (net of depreciation) 19,500

Selling and administrative 15000

Total 114,500

Then we solve for the cash balance and get the blaance as it is higher than 20,000 we do not need financing

Then, this value is the beginning cash for February. As the ending balance is 14,000 we will take 6,000 financing to reach the bare minimum of 20,000

3 0
3 years ago
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