For April, Anderson Antiques will have cash receipts of $365,000 and cash disbursements of $370,000. If its beginning cash is $4,000 and its desired reserve is $3,000, what will be its shortfall in cash for the month? A) There is no shortfall in cash but an excess of cash. B) -$3,000 C) -$4,000 D) -$5,000 O A

For April, Anderson Antiques will have cash receipts of $365,000 and cash disbursements of $370,000. If its beginning cash is $4,000 and its desired reserve is $3,000, what will be its shortfall in cash for the month? A) There is no shortfall in cash but an excess of cash. B) -$3,000 C) -$4,000 D) -$5,000 O A

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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27 Calculate the Cumulative loan balance for the month of July. The desired minimum required cash balance is $75,000. Balance at the begining of January is $80,000. (Just write the numbers. Do not use any punctuation marks or $ sign) June August Cash Budget Total cash receipts Total cash payments Net cash flow Beginning cash balance Cumulative cash balance Monthly loan or (repayment) Cumulative loan balance Ending cash balance Numeric Response July $165,600 $270,800 $305,200 246,000 268,000 295.300 -80,400 80,000 -400 75,400 75,400 $75,000 2,800 75,000 77,800 ? $75,000 9,900 75,000 84,900 -9,900 62,700 $75,000
Crane Company management wants to maintain a minimum monthly cash balance of $20,000. At the beginning of April, the cash balance is $20,000, expected cash receipts for April are $196,000, and cash disbursements are expected to be $204,000. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance? Amount to be borrowed to maintain the desired minimum monthly balance $11 Crane Company management wants to maintain a minimum monthly cash balance of $20,000. At the beginning of April, the cash balance is $20,000, expected cash receipts for April are $196,000, and cash disbursements are expected to be $204,000 How much cash, if any, must be borrowed to maintain the desired minimum monthly balance? Amount to be borrowed to maintain the desired minimum monthly balance $ I I
Ch. 8 Expected Cash Disbursements Question Please solve and explain the following problem with formula typed out. Pastoria Enterprises has scheduled raw materials purchases of $100,000 in Janurary $130,000 in February and $150,000 in March. The company pays for 75% of its purchases in the month of purchases and 25% in the month after purchase. What is the expected cash disbursement for the month of February?
Ch. 8 Expected Ending Cash Balance Please solve and explain the following problem Madison Coroporation's beginning expected cash balance is $35,000. Cash collections are budgeted at $50,000 and cash disbursements are estimated to be $80,000. The minimum required cash balance is $20,000 and the company can borrow as much as needed in increments of $10,000. Calculate the expected ending cash balance for the month.
Problem 29-8 Collections on receivables Here is a forecast of sales by National Bromide for the first four months of 2019 (figures in $ thousands): Month 1 Month 2 Month 3 Month 4 Cash sales 16 25 19 15 Sales on credit 110 130 100 80 On the average 51% of credit sales are paid for in the current month, 31% are paid in the next month, and the remainder are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number.) Expected Cash Inflow from Operations (in $ thousands) Month 3 Month 4
Tox ltd management expect the next three months from January to March 2018 to demand some unusual cash flows. A cash balance of R106 764 is currently on hand.1. Sales for December 2017: R1 339 200 2. Total sales forecasts are: • January 2018 R 669 600 • February 2018 R 892 800 • March 2018 R 781 200 •April 2018 R 892 800 3. 40% of all sales are on credit, while cash sales amount to 60% of total sales. 4. Cost of goods sold average 75% of sales. Inventory purchased during each month averages the cost of sales for the following month. The creditor payment period averages 15 days and goods are purchased consistently over the month. 5. Operating expenses are projected as follows: • Salaries and wages at 12% of sales paid in the month of the sale. • Other expenses at an average of 10%of sales paid in the month of the sale. • Cash receipts expected from repayment of a loan to an employee of R 22 320 due in March 2018. • Repayment of short-term loan of R11 160 is due in March 2018. •…
Question 1Ming Chung Limited is applying for additional bank overdraft finance to enable thecompany to make the plant and machinery purchase described below. The directorshave has asked you to draw up a cash budget for the 6 months to 30 June 2020 toprove to the bank that that overdraft finance will be repaid by 30 June 2020. Thecompany provides you with the following financial information:Month Sales Purchases Wages Overheads£ £ £ £November 2019 (actual) 45,800 18,400 9,600 6,000December 2019 (actual) 34,600 13,900 9,800 14,000January 2020 (budgeted) 42,200 16,800 10,500 7,000February 2020 (budgeted) 44,000 17,600 11,200 7,500March 2020 (budgeted) 54,000 21,600 13,500 18,800April 2020 (budgeted) 57,600 23,000 14,400 8,000May 2020 (budgeted) 61,800 24,700 15,300 9,200June 2020 (budgeted) 63,700 25,500 15,900 9,800Notes♦ The bank balance at 1 January 2020 is expected to be £25,000.♦ 60% of sales are for cash with the other 40% being on credit. 70% of creditsales pay in the month…
Question 7: MNO Company's credit sales policy is to have: • 50% of the sales amount in cash • 30% collected after one month • 20% after two months. • The purchasing policy is to pay 60% in cash and the rest is to be paid after one month. Required: a) Calculate the net accounting profit for December. b) Calculate the net cash flow for December. c) Comment on the difference between the two previous answers. Item October November December Sales 400,000 350,000 450,000 Purchases 350,000 340,000 420,000
crane company management wants to maintain a minimum monthly cash balance of $26,500. At the begining of April, the cash balance is $26,500, expected cash receipts for April are $259,700, and cash disbursements are expected to be $270,300. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance? Amount to be borrowed to maintain the desired minimum monthly balance ?
6. Smith Company was organized on August 1 of the current year. Projected sales for the next three months are: August $250,000 September 200,000 October 275,000 The company expects to sell 50% of its merchandise for cash and 50% for sales on account. Of the sales on account, 30% are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating cash collections from cash and accounts receivable for the three months.
Part #2: K Company is planning its cash disbursements for the upcoming months. In June, it anticipates $72,000 in Purchases, $130,000 in Payroll, and $40,000 in Loan Payments. In July, it anticipates $79,000 in Purchases, $140,000 in Payroll, and $35,000 in Loan Payments. In August, it anticipates $80,000 in Purchases, $150,000 in Payroll, and $30,000 in Loan Payments. Purchases are usually paid 40 percent in the current month and 60 percent in the following month. Payroll is paid 80 percent in the current month and 20 percent in the following month. Loan Payments are paid in the month due. Prepare a schedule of cash disbursements for the month of July only.
Question 7 : MNO Company's credit sales policy is to have: 50% of the sales amount in cash 30% collected after one month 20% after two months. The purchasing policy is to pay 60% in cash and the rest is to be paid after one month. Required: Calculate the net accounting profit for December. Calculate the net cash flow for December. Comment on the difference between the two previous answers. Item October November December Sales 400,000 350,000 450,000 Purchases 350,000 340,000 420,000

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