Answer:
$61,500.
Explanation:
Given that,
Beginning cash balance on September 1 = $7,500
Cash receipts from credit sales made in August:
= $150,000 × 70%
= $105,000
Cash receipts from credit sales made in September:
= ($150,000 × 1.20) × 30%
= $54,000
Cash disbursements from purchases made in August:
= $100,000 × 75%
= $75,000
Cash disbursements from purchases made in September:
= $120,000 × 25%
= $30,000
Ending cash balance September 30:
= Beginning cash balance + Cash receipts from credit sales made in August + Cash receipts from credit sales made in September - Cash disbursements from purchases made in August - Cash disbursements from purchases made in September
= $7,500 + $105,000 + $54,000 - $75,000 - $30,000
= $61,500.
Answer:
Rational Motive
Explanation:
A rational motive is the willingness to make an action based on logical and rational criteria
When outflow exceeds income.
Answer:
false
Explanation:
The allowance procedure estimates bad debt expense before an uncollectible account receivable has been purposed to be uncollectible.
Answer:
The answer is c. Enter into a forward contract to sell 30,000 euros in 30 days
Explanation:
The risk Golden is facing is the exchange rate risk. Specially, as of the firm's concern, 30,00 euros they will receive in 30 days will not be worth as much as it is now because the Euro is expected to be depreciated against the firm's domestic currency.
So, they may enter into a forward contract allowing them to sell 30,000 euros in 30 days ( take short position in Euro) at pre-determined exchange rate. By doing so, they effectively eliminate the exchange rate risk by lock-in the exchange rate at the day they receive 30,000 euro.
