I need help with part C down at the bottom of the picture."Craig can see that his present plan will not provide sufficient cash. If craig did not budget but went ahead with the original plan, he would be $______ short at the end of December, with no time left to adjust." Craig KovarCash BudgetFor the Four Months Ending December 31SeptemberOctoberNovemberDecemberEstimated cash receipts from:Part-time job810810$810810Deposit500Total cash receipts8108108101,310Less estimated cash payments for:Season football tickets-90Additional entertainment V-230-230-230-230Tuition-3,500Rent-320-320-320-320Food-180-180-180-180Deposit-500Total cash payments-4,820-730-730-730Cash increase (decrease)-4,0108080580Plus cash balance at beginning of month v6,5202,5102,5902,670Cash balance at end of month2,5102,5902,6703,250Feedbackb. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?Staticc. What are the budget implications for Craig Kovar?Craig can see that his present plan will not provide vsufficient cash. If Craig did not budget but went ahead with the original plan, he would be $X short vat the end of December, withno time left to adjust.>%24>

Tuition fees shortage = Tuition fess required - Cash Available

Craig Kovar Cash Budget For the Four Months Ending December 31 September October November December Estimated cash receipts from: Part-time job 810 810 810 810 Deposit v 500 $ 810 V %$4 1,310 v Total cash receipts 810 810 Less estimated cash payments for: Season football tickets v $ -90 Additional entertainment -230 -230 -230 -230 V Tuition v -3,500 V Rent v -320 V -320 V -320 V -320 Food v -180 V -180 V -180 V -180 Deposit v -500 V Total cash payments -4,820 -730 -730 -730 Cash increase (decrease) -4,010 V $ 80 80 580 Plus cash balance at beginning of month / 6,520 2,510 2,590 2,670 Cash balance at end of month 2,510 2,590 2,670 v 3,250 Feedback b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? Static v c. What are the budget implications for Craig Kovar? Craig can see that his present plan will not provide v sufficient cash. If Craig did not budget but went ahead with the original plan, he would be X short v at the end of December, with no time left to adjust.

Craig Kovar Cash Budget For the Four Months Ending December 31 September October November December Estimated cash receipts from: Part-time job 810 810 810 810 Deposit v 500 $ 810 V %$4 1,310 v Total cash receipts 810 810 Less estimated cash payments for: Season football tickets v $ -90 Additional entertainment -230 -230 -230 -230 V Tuition v -3,500 V Rent v -320 V -320 V -320 V -320 Food v -180 V -180 V -180 V -180 Deposit v -500 V Total cash payments -4,820 -730 -730 -730 Cash increase (decrease) -4,010 V $ 80 80 580 Plus cash balance at beginning of month / 6,520 2,510 2,590 2,670 Cash balance at end of month 2,510 2,590 2,670 v 3,250 Feedback b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? Static v c. What are the budget implications for Craig Kovar? Craig can see that his present plan will not provide v sufficient cash. If Craig did not budget but went ahead with the original plan, he would be X short v at the end of December, with no time left to adjust.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Kaleo has made up his mind—he wants a pool in the family’s backyard! He figures his kids and spouse will be thrilled. However, to cover the cost of the pool, they’ll have to pack up and live away from home for a few weeks during the summer to rent their home to vacationers. He crunched the numbers based on the following estimates. 1. Cost of pool/installation $50,000 2. Life of the pool (no salvage value) 20 years 3. Annual net cash inflows from renting (net of cash expenses for renting and pool maintenance) $6,500 4. Tax rate 23% 5. Average rate of return 8% Kaleo’s daughter, Sarah, found the above information written on a sheet of paper in his office, along with the following notes. “This is a no-brainer! We’ll recover the cost of this pool in just 7 years, even though we plan to live here until we’re old and gray, or at least as long as the pool hangs on. If we can rent our house out for just 3 weeks each year, it’ll be almost pure profit that we can put toward paying off…
Better Mousetrap's research laboratories just purchased a new executive jet for its president. The jet is currently underutilized, and management is considering allowing other officers to use it. This move would save $15,500 per year in real terms in airline bills. Offsetting this benefit is the notion that the jet will have to be replaced a year sooner than originally planned. If the jet cost $1,050,000 and was originally expected to last eight years, should management allow other officers to use the jet? The real opportunity cost of is 15%. Yes, because the present value of saving, $64,486.51, is greater than the present value of cost, $57.966.48. No, because the present value of saving. $69.553.48 is less than the present value of cost, $87,038.26. No, because the present value of saving, $64.486.51, is less than the present value of cost, $76,492.59. No, because the present value of saving, $69,553.48, is Igreater than the present value of cost, $65,732.14.
D9)
Use the four-step method in problem solving to solve the problem. 33) An accountant receives a salary of $265,775 per year. During the year, he plans to spend $98,000 on 33) his mortgage, $59,000 on food, $33,000 on clothing, $42,000 on household expenses, and $25,000 on other expenses. With the money that is left, he expects to buy as many shares of stock at $225 per share as possible. How many shares will he be able to buy? A) 39 shares B) 38 shares C) 41 shares D) 36 shares
Your firm spends $488,000 per year in regular maintenance of its equipment. Due to the economic downturn, the firm considers forgoing these maintenance expenses for the next 3 years. If it does so, it expects it will need to spend $1.9 million in year 4 replacing failed equipment. a. What is the IRR of the decision to forgo maintenance of the equipment? b. Does the IRR rule work for this decision? c. For what costs of capital (COC) is forgoing maintenance a good decision?
Your firm spends $498,000 per year in regular maintenance of its equipment. Due to the economic downturn, the firm considers forgoing these maintenance expenses for the next 3 years. If it does so, it expects it will need to spend $2.1 million in year 4 replacing failed equipment. a. What is the IRR of the decision to forgo maintenance of the equipment? b. Does the IRR rule work for this decision? c. For what costs of capital (COC) is forgoing maintenance a good decision? a. What is the IRR of the decision to forgo maintenance of the equipment? The IRR of the decision is%. (Round to two decimal places.)
a. Set up a function that shows how much money Thomas will receive each year. b. How much money will Thomas have in his bank account in 2012? ) The population of a certain animal species decreases at a rate of 3.5% per year. You have counted 80 of t animals in the habitat you are studying. a. What percentage of species will be left each year? b. Write a function that models the change in animal population. c. Estimate the number of years until the population first drops below 15 animals. 4) Suppose you want to buy a car that costs $11,800. The expected depreciation of the car is 35% per year. a. What percentage is the car worth each year it depreciates from the previous year? b. Find the depreciated value of the car after 6 years. 5) Milton has his money invested in a stock portfolio. The value, v(x), of his portfolio can be modeled with the function v(x)=30,000(0.78)* , where x is the number of years since he made his investment. Which statemen describes the rate of change of the…
Your firm spends $600,000 per year (end of the year payment) in regular maintenance of its equipment. Due to the COVID-19 economic downturn, the firm considers forgoing these maintenance expenses for the next three years. If it does so, it expects it will need to spend $2.7 million in year 4 (end of the year payment) replacing failed equipment. Can IRR be applied in this decision? Answer For what MARR is forgoing maintenance a good decision?
Ernie Bilko has a business idea. He wants to rent an abandoned gas station for just the months of November and December. He will convert the gas station into a drive-through Christmas wrapping station. Customers will drive in, drop off their gifts, return the next day, and pick up their wrapped gifts. He needs $338,500 to rent the gas station, purchase wrapping paper, hire workers, and advertise. If he borrows this amount at 6 and 1/2% interest for those two months, what size lump sum payment will he have to make to pay off the loan? (Round your answer to the nearest cent.)
Anthony operates a part time auto repair service. He estimates that a new diagnostic computer system will result in increased cash inflows of $1,500 in Year 1, $2,100 in Year 2, and $3,200 in Year 3. If Anthony's required rate of return is 10%, then the most he would be willing to pay for the new diagnostic computer system would be (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice $4,599 $5,501 $5,638
You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $600,000 today and annuity payments for the balance. The first payment will be for $280,000 in three months. The payments will increase at 1.3 percent per quarter and a total of 20 quarterly payments will be made. If you require an EAR of 8 percent, how much are you being offered for your company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of offer
I am just confused about how to solve this problem because it was never addressed in class so any help would be really beneficial, thank you! The question is based on the orginial information stated in the image. Now, Assume that you start out on January 1 of 2024 with $35,000.00 cash in the bank, and a 0 operating loan balance and you plant 1000 acres of No-Till soybeans (all on cash rented land). Assume your enterprise budget projections are correct. Develop a monthly cash flow budget from January of 2024 through December of 2024 to track the timing of cash inflows and outflows, and the resulting required operating loan balances at the end of each month. Use the “OSU Cash Flow Blank Template available on the class website for this exercise. Assume that you need to maintain a $5,000.00 balance in your cash account. Also assume that you have other sources of income to fund family living, so you do not actually take the operator labor charge out of the wheat enterprise. Assume…