GigaTech Corporation has a cash balance of $22,500 on June 1. The company must maintain a minimum cash balance of $20,000. During June, expected cash receipts are $75,000. Cash disbursements during the month are expected to total $90,000. Ignoring interest payments, during June the company will need to borrow: ⚫ a. $12,500 ⚫ b. $10,500 ⚫ c. $15,000 • $13.000
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- Solve no. 10Bird's Eye Treehouses Inc. has determined that a majority of its customers are located in the Winnipeg area. It therefore is considering using a lockbox system offered by a bank in Manitoba. The bank has estimated that use of the system will reduc collection time by 1.5 days. Average number of payments per day 760 Average value of payment $ 770 Variable lockbox fee (per transaction) $ 0.10 Annual interest rate on money market securities 4.0% e-1. What is the NPV of the new lockbox system? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.) NPV $170558.7 a-2. Should the lockbox project be accepted? 13 Yes No b-1. If there were a fixed charge of $7,000 per year in addition to the variable charge, what is the NPV of the new lockbox system? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit "$" sign in your response.) NPV $ b-2.…A firm collects 25% of its credit sale in the month of sale and the remainder in the following month. The credit sale for the month of June is GHC 150,000. It expert to pay bills of GHC 22,000 in July. The depreciation for the month is GHC 1000. If the company maintains an end month cash balance of GHC 100,000, what is the external finance required?
- If Dominion Bank also pays 3.25% annual interest, compounded daily. If you had the following deposits and withdrawals, calculate the amount of interest you would have earned at Dominion bank during the month of March. (March has 31 days) DATE ACTIVITY BALANCE March 1 beginning balance $5,500 March 10 $500 March 28 deposit $700 O $14.47 O $14.07 O $16.08 O $17.69 ???? ACCOUNT withdraw ????Some data regarding the financial enterprise are as follows;- The company collects its sales 25% in cash, 40%: 1 month term and the remainder with 2 months maturity.- Purchases are made in advance.- It is required to have 50000 balances in the cash register of the company at all times.- In cases where there is a deficit, credit will be used from the management bank and this deficit will be closed. Likewise, in cases of excess, the loans used from the relevant bank will be closed.- There is 35000 cash in the company account as of 30.04.2021. In addition, the company owes 75000 loans to the management bank as of the same date. When the cash budget of the enterprise for the period of May-August 2021 is prepared, what is the "cumulative loan" balance for August 2021?the second quarter of 2021: Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements The company predicts that 5 percent of its credit sales will never be collected, 30 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Purchases Wages, taxes, and expenses Interest In March 2021, credit sales were $190,000 and credit purchases were $130,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.) Equipment purchases April May June $320,000 $300,000 $360,000 128,000 151,000 176,000 Total cash disbursements 44,000 11,000 80,000 Ending cash balance 11,500 11,000 150,000 $…
- Answer all the requirementsHoliday Tree Farm has a cash balance of $34 and a short-term loan balance of $180 at the beginning of Qt. The net cash inflow for the first quarter is $36 and for the second quarter there is a net cash outflow of $48. All cash shortfalls are funded with short-term debt. The firm pays 2 percent of its prior quarter's ending loan balance as interest each quarter. The minimum cash balance is $20. What is the short-term loan balance at the end of Q2? Multiple Choice $184.3 $179.2 $138.6 $128.4 $19311. The treasurer of Yoda Inc. needs to estimate cash collections from accounts receivable for September, October, and November 2022. Forty percent of the company's customer's pay in cash the rest are credit customers. The collection pattern for the credit customers is 20% in the month of the sale and 80% in the following month. They have zero uncollectible accounts. Estimated total sales are as follows: August $70,000 September $80,000 October $85,000 November $100,000 a. What is Yoda's cash collections for September, October, and November? - September cash collections: - October cash collections: - November cash collections: b. The accounts receivable balance at the end of November will be:
- INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 0006. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150 000. Salaries are expected to increase by 9% with…Blossom Enterprises had a tough month in May, but June's sales and cash activity are looking strong. Blossom had to borrow $4,000 in May in order to maintain the company's required minimum balance of $5,000. The loan carries an annual interest rate of 6%, with monthly interest payments required. Loan withdrawals, in $1,000 increments, are assumed to be taken out on the first of the month. Loan payments, also in $1,000 increments, reduce the principal on the last day of the month. The June 1 cash balance is $5,590. With budgeted cash receipts of $103,200 and cash disbursements of $101,100 in June, how much of the prior month's loan would Blossom be able to pay off in June, if any? What is Blossom's projected ending cash balance in June? Loan paid off Projected ending cash balance