Answer:
The firm will needto borrow 6,500 to achieve their minimum cahs balance and pay their budgeted expenditures
Explanation:
July
beginning $ 4,500
receipts $ 50,000
disbursement+ $ (56,000)*
subtotal $ (1,500)
minimun $5,000
Financing needs: 5000 - (-1500) = 6,500
payment/loan $6,500
*sum of cash payment for purchase of materials, operating expenses and capital expenditures
Answer:
C) In today's dollars, Chang Lee's money is worth more than Soo Lee's
Explanation:
The present value of receipts 6 year hence of amount $20,000 discounted at 7% rate would be: Discounting factor of 1 $ for 6 years at 7 % i.e expressed as:
= 20,000 × 0.6663
= $ 13,327 approx
The present value of $20,000 receipts 9 years hence discounted at 7% rate is given by:
= 20,000 × 0.5439
= 10,879 approx.
As is evident from above, Chang Lee's present value of receipts is more than those of Soo Lee's.
I think it is B because that sounds right
First we must consider the definition of "liquidity." Liquidity means that you can quickly withdraw money from the account—with this in mind, the answer becomes clear.Checking accounts, Savings accounts, and money market accounts can all be withdrawn from easily. Thus, they have high liquidity.However, a certificate of deposit (CD for short) does not. A CD requires that you put in your money for a set amount of time, for example 5 years. You cannot withdraw it until the 5 years is up. Low liquidity.Therefore the answer is Certificate of deposit