Which of the following is not true about emergency funds?

g "9. (a) Explain how financial ratio analysis of a firm’s projected cash flow budget could be efficiently used by its managers

grin007 [14]

Answer:

(a) the financial ratio will be calculated with the projections of the cash flow. This will help the company to determinate their liquidity needs and their other atios as to budget the cash flow, the company had to solve for their dividend plan (to solve for financing activities cashflow) this will allow to calcualte for dividend per share for example. Also, the budget solve for purchase and sale of long-term equipment this makes the company to plan ahead how it is going to finance this. It will allow to solve the long term debt to equity, the long term asset to equity among other.

Resuming the budgeting of the financial statement will allow the managers to check for the performance of the company if operations runs according to plan.

(b) the budget allow to forecast the future while it is certain that actual values will differ if it isn't working in the papper there are less chances of a good output in real-life thus, It is used to discard bad project and only actual realize thoseth good odds. Also, is a resource of control once the operation are concluded to look for deviancy. Whitout budgeting accounting there is no way to plant ahead the use of cash to the business requirement.

Explanation:

4 0

3 years ago

Based on guidelines established by the accounting manager, Jaime, the accounts payable clerk, makes payments to vendors in order

sergeinik [125]

Answer:

Programmed.

Explanation:

This is a form of decision that is has been made or is been made by as manager just like Jaime the account managing clerk which is repetitive or occurs steadily and over and over. The fact that it happens this steadily makes it a programmed decision.

This decision making are always taken in accordance with some establishment habit, regulations or procedures while the nature of problem that requires a non programmed decision is unstructured and something different. It needs a higher management participation.

In programmed decision making, there could likely be no error in the decisions because it is a routine and managers usually have the information they need to create rules and guidelines to be followed by others.

5 0

3 years ago

Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data

Alla [95]

Answer:

Blinks= $18.4

Dinks= $110.4

Explanation:

Giving the following information:

Blinks:

Units= 947

Direct labor hours per unit= 1

Dinks:

Units= 1,811

Direct labor hours per unit= 6

Fabrication Department= $109,400.

Assembly Department= $108,000.

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Total overhead= 109,400 + 108,000= $217,400

Total direct labor hours= (947*1) + (1,811*6)= 11,813

Predetermined manufacturing overhead rate= 217,400/11,813

Predetermined manufacturing overhead rate= $18.40 per direct labor hour.

Now, the unitary allocated overhead per unit:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Blinks= 1*18.4= $18.4

Dinks= 6*18.4= $110.4

7 0

3 years ago

On December1, Mountain and Meadow Tree Service prepaid $6,600 for six months' rent. Give the adjusting entry to record rent ex

DerKrebs [107]

Answer:

Mountain and Meadow Tree services prepaid rent $6,600 on December 1 for 6 months rent.

Note for asset and expense accounts when they increase you debit and when they reduce you credit.

The first entry

On December 1 : Debit Prepaid Rent account for $6,600

Narration: Prepaid rent for 6 months

Balance: $6,600

Since the rent is for 6 months, monthly payment will be= 6,600/6= $1,100

On December 31 post the following adjusting entries

December 31 : Debit Rent Expense $1,100

Narration: Rent for December

Balance: $1,100

December 31 : Credit Prepaid Rent $1,100

Narration: Rent for December

Balance: $5,500

6 0

3 years ago

(1 pt.) Arna, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow. Year ended De

Natali5045456 [20]

Answer:

A.2013 $20,560

B.2014 $23,125

Explanation:

2013 inventory at base amount ($22,140 ÷ 1.08)$20,500

2012 inventory at base amount(19,750)

Increase in base inventory $750

2013 inventory under LIFO

Layer one ($19,750 × 1.00)$19,750

Layer two ($750 × 1.08)810

Total $20,560

2014 inventory at base amount ($25,935 ÷ 1.14)$22,750

2013 inventory at base amount(20,500)

Increase in base inventory $2,250

2013 inventory under LIFO

Layer one ($19,750 × 1.00)$19,750

Layer two ($750 × 1.08)810

Layer three ($2,250 × 1.14)2,565

Total $23,125

8 0

3 years ago