Answer:
Cash Received during the period = $155200
Explanation:
The amount of receipts or cash received during the period can be calculated using the following formula.
Cash Received = Closing Balance + Cash Disbursements - Opening Balance
Cash Received = 67200 + 128000 - 40000
Cash Received = $155200
So, the cash receipts during the period are $155200.
Answer: B
Explanation:
Budgetary slack is a cushion created in a budget by management to increase the chances of actual performance beating the budget. Budgetary slack can take one of two forms: an underestimate of the amount of income or revenue that will come in over a given amount of time, or an overestimate of the expenses that are to be paid out over the same time period. Budgetary slack is generally frowned upon because the perception is that managers care more about making their numbers to keep their seats and gaming the executive compensation system rather than pushing company performance to its potential. Managers putting a budget together could low-ball revenue projections, pump up estimated expense items, or both to produce numbers that will not be hard to beat for the year. It also provides flexibility for operating under unknown circumstances, such as an extra margin for discretionary expenses in case budget assumptions on inflation are incorrect, or adverse circumstances arise.
Answer:
The cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be $108,099
Explanation:
Cash Flow from Operating Activities adjusts the Net Income for the Year with (1) Non-Cash Items, (2) Items Appearing Elsewhere (3) Changes in Working Capital.
From the given data Net Cash flow from Operating Activities is Determined as follows:
<u>Cash flow from Operating Activities</u>
Net income $124,042
<em>Adjustment for Changes in Working Capital.</em>
Increase In Trade Receivables (61,370-45,427) ($15,943)
Net Cash flow from Operating Activities $108,099
Answer:
Is there any multiple choice?
Answer:
Reserve requirements have an indirect relationship with the money supply
Explanation:
Reserve requirements are a portion of customer deposits a bank is supposed to keep in its custody at all times. The federal reserve gives guidance on the proposition of reserve requirement that a bank should hold. Reserve requirement is usually a percentage of the deposits. Banks cannot loan out their reserves.
Reserve requirements have an inverse relationship with the money supply in the economy. If the reserve requirement is high, banks will have a lower proposition of customer deposits to loan out. When reserve requirement is low, banks will have a bigger proposition of deposits to loan out, thereby increasing the money supply in the economy.
