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3 years ago

How are a startup's financing requirements estimated

Business

1 answer:

Flauer [41]3 years ago

8 0

Answer:

How are Startups Financing Requirements Estimated?

1. Make Use of a Startup Work Sheet to be Able to Plan the Initial Financing.

2. Focus on the Expenses versus Assets. Another way for startups to estimate their financing requirements is by means of focusing on the expenses versus assets.

3. Similar Articles.

4. Cash Balance Prior to the Starting Date.

Explanation:

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View Policies Current Attempt in Progress Metlock, Inc. took a physical inventory on December 31 and determined that goods costi

monitta

Answer:

The amount should Metlock report as its December 31 inventory is $286,500.

Explanation:

Ending inventory = Phusical count + goods purchased in transit FOB shipping + cost of goods sold in transit FOB destination

= 230000 + 32000+ 24500

= $286,500

Therefore, The amount should Metlock report as its December 31 inventory is $286,500.

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3 years ago

Alaskan foodstuffs just announced the annual dividend for this coming year will be $0.36 a share and all future dividends are ex

sammy [17]

Price of share is $12.2. Future dividend is therefore expected to grown by 4.5%. To find the rate of return i.e. K, we will do the following steps:

= 0.36(1.045)/12 = 0.03135+4.5 = 4.53135

Therefore, rate of return is 4.53%.

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3 years ago

Silk Company issued $500,000 of 7%, 10-year bonds on one of its interest dates for $431,850 to yield an effective annual rate of

Rudiy27

Answer:

interest expense 38,866.5 debit

discount on bond payable 3,866.5 credit

cash 35,000 credit

Explanation:

The effective method calculates the interest expense considering the carrying value and the market rate. Then, the difference with the coupon payment is amortization of the premium or discount

carrying value (issued price of the bonds) 431,850

market rate: 9%

interest expense: 431,850 x 9% = 38,866.5

coupon payment 500,000 x 7% = 35,000

this is the cash outlay for the bonds

Difference: 38,866.5 - 35,000 = 3,866.5

As the proceeds are lower than face value, this is a discount.

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3 years ago

Marketing, selling, distribution, and administrative expenses: A. can be traced through causal relationships to products. B.

lorasvet [3.4K]

Answer:

C) are independent of volume and product mix.

Explanation:

This is true because marketing, sales, distribution and administrative expenses are generally mixed costs. That means that they are part variable and part fixed.

For example, most salespeople's salary consists of a small fixed amount and a percent per total sales made.

Distribution costs also vary because generally when you purchase a truck, the largest cost is the truck itself, and the driver also gets paid on a monthly basis, insurance, etc., but other costs like fuel and maintenance costs vary depending on how much the trucks are driven, so they depend on the volume distributed.

Administrative expenses are also mostly fixed, but they might include bonuses for good performance which depend on total sales, and other expenses that might increase when total sales increase.

Finally marketing expenses are generally determined as a percentage of the expected sales revenue generated by the products. There are several ways to determine marketing expenses, but they all are based on a fixed amount (e.g. cost of producing an advertisement) and variable factors like market share or sales growth. E.g. you will advertise more intensively in the areas where your product sells better.

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3 years ago

Sport Ready produces sport socks. The company has fixed expenses of $110,000 and variable expenses of $1.10 per package. Each pa

emmasim [6.3K]

Answer:

current contribution margin = $2.20 - $1.10 = $1.10

total fixed costs = $110,000

break even point = $110,000 / $1.10 = 100,000 units

sales level to earn $24,000 in operating profits = $134,000 / $1.10 = 121,819 units

if fixed costs increase to $125,000

new contribution margin = $2.20 - $1 = $1.20

new break even point = $125,000 / $1.20 = 104,167 units

sales level to earn $24,000 in operating profits = $149,000 / $1.20 = 124,167 units

The increase in contribution margin (9.09%) is not large enough to offset the increase in fixed costs (13.64%), that is why you will need to sell more units in order to make the same operating profits (124,167 - 121,819 = 2,348 units more).

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3 years ago

How are a startup's financing requirements estimated￼

How are a startup's financing requirements estimated