### Lawn Mowing Business Financial PlanningIf you have a lawn mowing business and plan to work 250 hours per month, charging your customers $24 per hour, you need to calculate and manage your costs effectively. Below is an outline of your anticipated monthly costs:1. **Advertising**: $25 per month2. **Gas**: $1.30 per hour3. **Depreciation on mowers**: $25 per month4. **Assistant's Wages**: $8.00 per hour5. **Miscellaneous Expenses**: $30 per monthYou intend to allocate your monthly costs as follows:- Pay 60% of your monthly costs in the month incurred.- Pay 30% in the second month.- Pay the remaining balance in the third month.### Cash Flow CalculationTo determine your cash payments for operating activities in your second month of business, you’ll need to add up these expenses and apply the specified payment percentages. ### Example Calculation for One Month:#### Costs1. **Advertising**: $252. **Gas**: $ 250 \text{ hours} \times $1.30 = $325 $3. **Depreciation on mowers**: $254. **Assistant's Wages**: $ 250 \text{ hours} \times $8.00 = $2,000 $5. **Miscellaneous Expenses**: $30#### Total Monthly Costs\[ 25 + 325 + 25 + 2000 + 30 = $2,405 \]#### Payment Breakdown:- **60% in the month incurred**: $ 0.60 \times 2405 = $1443 $- **30% in the second month**: $ 0.30 \times 2405 = $722 $- **10% in the third month**: $ 0.10 \times 2405 = $240.50 $### Second Month Payments- 60% of the second month’s expenses: $1,443- 30% of the first month’s expenses: $722Total payments in the second month: $ 1,443 + 722 = $2,165 $This framework provides a structured approach to calculate the cash outflow, which will help in maintaining the budget and ensuring sustainable financial planning for your business.### Saving and

Cash flows from operating activities: It is a section of the Statement of cash flow that explains…

You have a lawn mowing business. You plan to work 250 hours per month and charge your customers $24 per hour. Your anticipated costs include: Advertising $25 per month Gas $1.30 per hour $25 per month $8.00 per hour $30 per month Depreciation on mowers Assistant's Wages Miscellaneous Expenses You plan on paying 60% of your monthly costs in the month incurred, 30% in the second month and the remainder in the following month. Calculate the amount of cash payments for operating activities in your second month of business.

You have a lawn mowing business. You plan to work 250 hours per month and charge your customers $24 per hour. Your anticipated costs include: Advertising $25 per month Gas $1.30 per hour $25 per month $8.00 per hour $30 per month Depreciation on mowers Assistant's Wages Miscellaneous Expenses You plan on paying 60% of your monthly costs in the month incurred, 30% in the second month and the remainder in the following month. Calculate the amount of cash payments for operating activities in your second month of business.

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

The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $ 55 a night. Operating costs are as follows. Salaries $ 5,100 per month Utilities $ 1,400 per month Depreciation $ 1,100 per month Maintenance $ 1,464 per month Maid service $ 11 per room Other costs $ 22 per room Determine the inn’s break-even point in number of rented rooms per month. Break-even point enter the break-even point in number of rented rooms per month rooms eTextbook and Media Determine the inn’s break-even point in dollars. Break-even point $enter the break-even point in dollars
Suppose you are the human resource manager for a cellular phone company with 700 employees. Top management has asked you to implement three additional fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These include group term life insurance, a group legal services plan, and a wellness center. The life insurance is estimated to cost $390 per employee per quarter. The legal plan will cost $468 semiannually per employee. The company will contribute 40% to the life insurance premium and 75% to the cost of the legal services plan. The employees will pay the balance through payroll deductions from their biweekly paychecks. In addition, they will be charged 1 4 % of their gross earnings per paycheck for maintaining the wellness center. The company will pay the initial cost of $900,000 to build the center. This expense will be spread over 5 years. (a) What total amount should be deducted per paycheck for these new…
You run a nail salon. Fixed monthly cost is $5,419.00 for rent and utilities, $5,913.00 is spent in salaries and $1,724.00 in insurance. Also every customer requires approximately $5.00 in supplies. You charge $107.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $11,155.00, salaries to $6,372.00 and insurance to $2,220.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $171.00 per service. At what point will you be indifferent between your current location and the new location? Submit Answer format: Number: Round to: 2 decimal places. A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw material for each sandwich at $5.00 per slice, $1,103.00 as monthly rental and $219.00 monthly as insurance. They consider the cost of lost sales as $6.00 per item. They are able to sell any leftover sandwiches for $3. They prepares…
To recap, W.T.’s planning on the following: Newspaper ad $120 per month Social media manager $100 per month; $1 per job scheduled Payment collection $0.75 per job Gas $4.00 per job Considering his analysis of similar services and to keep things simple, W.T. plans to price all jobs the same and charge $15 per job. Because of this flat rate, he anticipates he’ll likely need to create different types of “jobs”. For example, purchasing a list of items at the grocery store would be one job, while a bundle of 2-3 small errands such as picking up dry cleaning and prescriptions, might be considered one job. We’ll deal with those details later. For now, assume that all jobs are priced at $15 each and all have the associated variable expenses listed above. Because this will be a new business, W.T. knows business will likely be slow at the beginning. Complete the following table assuming W.T. completes 10 jobs in a single month. Item Per Job Total (10…
William Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,510 per month. One of the barbers serves as the manager and receives an extra $580 per month. In addition to the base salary, each barber also receives a commission of $8.40 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines William currently charges $18.00 per haircut. (a) Determine the unit variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Your answer is correct.. Total unit variable cost per haircut Total fixed costs (b) $300 per month $1,020 per month $0.45 per haircut $150 per month plus $0.15 per haircut $30 per month eTextbook and Media (d) V Your answer is correct. Break-even point Break-even point sales $ Compute the break-even point in sales units and in sales dollars. eTextbook and Media Your answer is incorrect. $ Net income $ $ 1070 19260 9 9630 haircuts Determine…
A 90-room motel has an average room rate of $64 and average occupancy of 77%. Its fixed costs are $800,000 a year, and its variable costs total $500,000. The owner wants to increase operating income from current level to $250,000. She decides to do the following adjustments: increase price by $6 spend $30,000 more per year on marketing to compensate for the higher room rate To motivate the staff, the owner also set a $2,000 reward to the best employee Send guest fruits to each room, which costs $5 per room How many rooms does she need to sell per night?
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.37 a minute for daytime calls and $.16 a minute for evening calls. Plan B has a charge of $.46 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 300 minutes of calls allowed per month and a charge of $.34 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 130 minutes of day calls and 50 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost for Plan A Cost for Plan B Cost for Plan C $ $ $ b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.) Plan A is optimal from zero to…
Lotus Development has a software rental plan called SmartSuite that is available on the world wide web. A number of programs are available at $2.99 for 48 hours. If a construction company uses the service an average of 48 hours per week, what is the present worth of the rental costs for 10 months at an interest rate of 1% per month compounded weekly? Assume 4 weeks per month.
Sam's Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates 52 weeks per year and weekly demand is 130 filters. Sam estimates that it costs $20 to place an order and his annual holding cost rate is $3 per oil filter. Currently, Sam orders in quantities of 650 filters. Calculate the total annual costs associated with Sam's current ordering policy. Total annual costs = $
Vaibhav
An orchardist pays apple pickers $10 per hour plus $8 per $100kg of apples picked. If workers pick, on average 180 kg per hour for a 40-hour workweek. What are the gross earnings of the week?
You run a nail salon. Fixed monthly cost is $5,102.00 for rent and utilities, $5,992.00 is spent in salaries and $1,613.00 in insurance. Also every customer requires approximately $3.00 in supplies. You charge $90.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $11,786.00, salaries to $6,735.00 and insurance to $2,228.00 per month. Cost of supplies will increase to $7.00 per service. However you can now charge $167.00 per service. What is the PROFIT or Loss at the crossover point? If a loss include the - Round the quantity to 3 digits when using to calculate the profit Submit Answer format: Number: Round to: 2 decimal places.