You have a lawn mowing business. You plan to work 300 hours per month and charge your customers $23 per hour. Your anticipated costs include:Advertising$30 per monthGas$1.20 per hour$25 per month$9.00 per hour$20 per monthDepreciation on mowersAssistant's WagesMiscellaneous ExpensesYou 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 theamount of cash payments for operating activities in your second month of business.

Anticipated costs are the costs that may have to be incurred in a coming accounting period. The…

You have a lawn mowing business. You plan to work 300 hours per month and charge your customers $23 per hour. Your anticipated costs include: Advertising $30 per month Gas $1.20 per hour $25 per month Depreciation on mowers Assistant's Wages $9.00 per hour Miscellaneous Expenses $20 per month 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 300 hours per month and charge your customers $23 per hour. Your anticipated costs include: Advertising $30 per month Gas $1.20 per hour $25 per month Depreciation on mowers Assistant's Wages $9.00 per hour Miscellaneous Expenses $20 per month 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

You have been offered two different jobs for the upcoming summer. Since both are full-time positions, you must choose to work only one of the jobs. The first job is in an office. The pay will be $320 per week. The office is located 20 miles from your home, so you estimate that you will spend $25 per week on gas. You will also have to pay $25 per week for parking. Because you are required to dress professionally, you will need to purchase some new clothes. You estimate that you will spend $350 on new clothes for this job during the summer. The second job is at an amusement park. The pay will be $220 per week. The amusement park is also 20 miles from your home, but you can carpool with a friend. Your share of the gas will be $12.50 per week. There is no charge for parking. The amusement park will furnish you with a uniform, so you won't need to buy any special clothes. Assuming that your summer break will allow you to work 12 weeks, which job will provide you with more money? Please…
Fred is considering three job offers in advertising. A full-time position as a coordinator that pays a salary of $40,000 per year. A full-time position as a designer that pays an hourly wage of $28. The job assumes five 8-hour days per week. A sales representative that pays a 5% commission. Sales reps typically sell an average of $100,000 per month in advertising. The following are the specifics about the benefits of the job opportunities: The U.S. government will deduct Social Security (6.2%) and Medicare (1.45%). Fred will deduct 15% of Gross Income to cover Federal Income Tax. Fred does not live in a state with State Income Tax. Fred is planning on taking two weeks of vacation and has typically been sick 3 days per year. The Coordinator job includes two weeks of paid vacation and five paid sick days per year, paid health insurance, life insurance costing $35 per month, and a fully paid retirement plan. The Designer job includes five paid vacation days and three paid sick days…
Xavi sells seashore paintings. His annual Fixed Costs are $1,000 and the Variable Costs are $8 per painting. Xavi is considering advertising his artwork in a local gallery, the cost of which is $80 per month. What would be the new annual breakeven revenue (in dollars) if he continues to sell his pieces for $15?
It is the first of October, and you are developing cost estimates for creating an engineering consulting business with a small group of friends. Liability insurance beginning January 1 will cost $475 per month, payable at the beginning of each month. What is the PW of this insurance for the first year as of today’s date? The firm’s MARR is a 12% nominal annual rate.
A businessman bought a used building and found that the roof insulation was insufficient. He estimated that with 6 inches of foam insulation he could lower his heating bill by $25 a month and the cost of air conditioning by $20 a month. Assuming that the first six months of the year are winter and the next six are summer, how much can you afford to spend on insulation if you expect to have the building for only two years? Assume i=1 ½ % per month.
A Texas Steak House in Puebla consumes 5,500 pounds of sirloin steak each month. Ari Mendoza, the new restaurant manager, recently completed an engineering degree. He learned that the steak is replenished using an EOQ value of 3,500 pounds. The EOQ value was computed assuming an interest rate of 23 percent per year. Assume that the current cost of the sirloin steak to the steak house is $10 per pound. What is the setup cost used in determining the EOQ value? Mendoza received an offer from a meat wholesaler in which a discount of 20 percent would be given if the steak house purchased the steak in quantities of 6,000 pounds or more. Should Mr. Mendoza accept the offer from the wholesaler? If so, how much can be saved?
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…
You have accepted your first job in Calgary. You are told it is a three-year contract and you have to decide to purchase a condominium or lease an apartment. You can buy a one-bedroom condominium for $170,000 and believe the resale value will be $185,000. Monthly condo fees will cost $750, payable at the start of every month. The other option is to lease an apartment for $1,500 per month, all utilities included. Should you rent or buy the condo if mortgage rates are 4.5% compounded semiannually? Multiple Choice O O O O Buying can save $14,598 Leasing can save $19,401 Leasing can save $17,578 Buying can save $14,201 Buying can save $17,201
Marcus can choose between a monthly salary of $1,500 plus 5.5% of sales or $2,400 plus 3% of sales. He expects sales between $5,000 and $10,000 a month. Which salary option should he choose? Explain
How many units does Eddie the Entrepreneur need to sell to breakeven in a day? He rents a kiosk in the mall for $300 a day. He creates artworks that cost him $47 each in materials and sells them for $100 each. He pays one of his friends $10 an hour to man the booth and he has to pay mall management 3% of his sales. The mall is open daily from 10 am to 8 pm.
Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 76 properties and earns an average of $5,200 annually for each property. The owner of ELM is planning for the coming year. New building in the area is expected to increase volume by 21 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 11 percent. ELM plans to increase the price of service by 13.0 percent to cover expected increased wage and equipment costs. Required: Estimate revenues for Emmons Lawn Maintenance for the coming year. Note: Enter your answer rounded to the nearest whole dollar.
You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $4,200 and will be posted for one year. You expect that it will generate additional revenue of $714 a month. What is the payback period? The payback period is ___ months (Round to one decimal place)