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3 years ago

A summary budget, one that contains the combined information of the flexible and operating budgets and is compiled

Business

1 answer:

Illusion [34]3 years ago

8 0

Answer:

master

Explanation:

A master budget is an integration of all other functional budgets such as sales, purchases, marketing, and production. It is prepared when all the other budgets have been completed. The master budget is a summary budget that indicates the planned activities of the business for the coming period.

Master budgets have to be approved by the top management before implementation. A Master Budget shows the projected operating profit of the company for the coming financial period. It also portrays how the balance sheet will be at the close of the period.

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A U.S. bank has £120 million in loans to corporate customers and has £70 million in deposits it owes to customers with the same

postnew [5]

Answer:

£30 million

Explanation:

Banks net exposure serves as the the money currently owned by the bank.

Credit to bank;

Loans to corporate customers is bank's money since customers will repay the loan back to the bank even with interest = £120 million

Total credit owned by the bank =

£120 million

Debit;

Deposit owned to customers = £70 million (It is customers money not bank's)

Money sold forward by bank is also going out of banks pocket (debit) =£20 million

Total debt owned by bank = £70 million+£20 million = £90 million

Bank's net exposure = Total credit - debt owned by bank

Banks net exposure = £120 million - £90 million

= £30 million

6 0

3 years ago

Slaughter Industries just signed a sales contract with a new customer. What is this contract worth as of the end of year 4 if th

igor_vitrenko [27]

Answer:

$489,512.15

Explanation:

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

We are supposed to determine the present value

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 84,000

Cash flow in year 2 = 113,000

Cash flow in year 3 = 125,000

Cash flow in year 4 = 130,000

I = 6%

PV = 387,739.47

387,739.47(1.06)^4 = $489,512.15

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

8 0

3 years ago

Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Stevens of $176,130.

denpristay [2]

Answer:

$45,440.00

Explanation:

Jack's interest on capital =5%*$90,000=$4,500.00

Stevens' interest on capital =5%*$111,000=$ 5,550.00

Net income left to be shared in ratio 1:2 is the net income of $309,000 minus the total interest on capital of $10,050 i.e $4,500+$5,550 and salaries to Stevens

Net income left for sharing=$309,000-$10,050-$176,130=$ 122,820.00

Jack's share of profit=1/3*$ 122,820.00 =$ 40,940.00

Stevens' share of profits=2/3*$122,820.00 =$ 81,880.00

Amount distributed to Jack=$4,500+$ 40,940=$45,440.00

6 0

3 years ago

The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $23,0

aleksandr82 [10.1K]

The correct answer is a

5 0

3 years ago

The 7-year $1 comma 000 par bonds of Vail Inc. pay 9 percent interest. The market's required yield to maturity on a comparab

Makovka662 [10]

Answer:

a) Yield to maturity = 8.14%

b) The value of the bonds = $917.99

c) Since market value of bond is higher than book value of bond. So investor should not purchase the bond.

7 0

3 years ago