Tent Attempt in ProgressCrane Company has recorded the following items in its financial recCash in bankCash in plant expansion fundCash on handHighly liquid investmentsPetty cashReceivables from customersStock investments$51,200101,20012,20038,70052093,30068,500The highly liquid investments had maturities of 3 months or less when they were purchased. The stock investments will be sold in thenext 6 to 12 months. The plant expansion project will begin in 3 years.(a)What amount should Crane report as "Cash and cash equivalents' on its balance sheet?

Cash and Cash Equivalents: These are defined as the cash in hand and all other most liquid assets on…

Answered: Attengk in Progress Crane Company has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Part 1 You have P10,000 to invest. You do not want to take any risk, so you will put the funds in a savings account at the local bank. Of the following choices, which one will produce the largest sum at the end of 22 years? An account that compounds interest. please explain 1.1 Annually 1.2 Daily 1.3 Quarterly 1.4 Monthly 2. The company is setting aside funds to acquire a property for its new warehouse. The company needs P74,735 to make the down payment. The company deposits P5,000/month in the fund account which pays 1% per month. As the financial manager you have been tasked to determine how long it will take to accumulate enough funds to acquire the property? 3. Suppose you are 40 years old and plans to retire in exactly 20 years. Twenty one years from now you will need to withdraw P50,000 per year from your retirement fund to add to your SSS pension. Assume you are to live for 85 years, how much money should you place in the retirement fund each year for the next 20…
an a&e firm planning for a future expansion deposited $36000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. if the account had a total of $454000 immediately after the fifth deposit, what rate of return did the company make on these deposits?
please answer within 30 minutes.
Do fast A small scale mining investment is expected to generate $60,000 per year in profits over the next 15 years. If these profits are invested in a mutual fund account that ears a market interest rate of 10% per year, calculate how much the fund will be worth after the 15 years in actual dollars and in real dollars Inflation is expected to average 6% per year over that period. In real dollarA. $3,256,990B. $1,906,350C. $795,450D. $1,181,400 In actual dollarsA. $3,256,990B. $795,450C. $1,506,350D. $1,181,400 please dont provide image based answer thanku
Knowledge Check A purchase of a backhoe with an 8-year life requires an initial investment of $88,300, has positive cash flows of $10,000 per year, and has an estimated salvage value of $21,700. Indicate the inputs to be entered into the financial calculator keys. What is the return of the investment? (Round internal rate of return to two decimal places (e.g., 52.75%).) Inputs Calculator Keys IRR N 8 -2.143 % ? | PV 88300 i PMT 10000 FV
Finance
PART B From Part A above, assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for initial year). Nivea-Corporation invested the amount in a project and generated the following sequence of cash flows over six years: Year Cash Flow ($ million) 0 -59.00 1 4.00 2 5.00 3 6.00 4 7.33 5 8.00 6 8.25 1.Calculate the terminal value assuming that cash flows after the sixth year grow at 2% annually in perpetuity, and then recalculate the NPV use an interest rate of 10%
Selecting Kanton Company's Financing Strategy and Unsecured Short-Term Borrowing Arrangement. Morton Mercado, the CFO of Kanton Company, carefully developed the estimates of the firm's total funds requirements for the coming year. These are shown in the following table: Month Total Funds Month Total Funds January $1,000,000 July $6,000,000 February $1,000,000 August $5,000,000 March $2,000,000 September $5,000,000 April $3,000,000 October $4,000,000 May $5,000,000 November $2,000,000 June $7,000,000 December $1,000,000 In addition, Morton expects short-term financing costs of about 10% and long-term financing costs of about 14% during that period. He developed the three possible financing strategies that follow: Strategy 1 - Aggressive: Finance seasonal needs with short-term finds and permanent needs with long-term funds. Strategy 2 - Conservative: Finance an amount equal to the peak need with long-term funds and use short-term funds only in an emergency. Strategy 3 -…
The West Mount Trading deposited yearly an amount of $5000 for 15 years. The accumulated amount was used to cover an emergency repair costing $100,000 in year 15. Draw the cash flow diagram. Calculate the rate of return of that this investment provided to the West Mount Trading.
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Cash flows It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane has a savings account and her bank loans money at 6% per year while it offers short-term investment rates of 5%. Jane's cash flows during Augu were as follows: a. Determine Jane's total cash inflows and cash outflows. b. Determine the net cash flow for the month of August. c. If there is a shortage, what are a few options open to Jane? d. If there is a surplus, what would be a prudent strategy for her to follow? Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Item Clothes Interest received Dining out Groceries Salary Auto payment Utilities Mortgage Gas Cash inflow Cash outflow $1,100 $440 $4,400 $450 $820 $359 $290 $1,310 $219 X
The company A manages cash by using Baumol model for defining the amount of cash. According to the Baumol model the average model the average balance (C */2) is equal to 500$. That moment the negotiable securities yield was 4%. A steep rise caused an increase in interest rates to 9%. Which is the new average cash balance?

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