Your firm has a net cash inflow forthe quarter of $40. The beginningcash balance is $120. Companypolicy is to maintain a minimum cashbalance of $100. The firm borrowsonly the amount that is necessary tomaintain that balance. If it has anysurplus funds, it invests in moneymarket instruments. The firmsurplus.to have a zero cumulative

Surplus refers to an amount that is in excess of the required amount to maintain the minimum balance…

Answered: Your firm has a net cash inflow for the…

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Your firm has a net cash inflow for the quarter of $40. The beginning cash balance is $120. Company

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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Green Company uses the Baumol model tomanage its disbursement account. Monthlycash disbursement is P1,200,000. Cash in thisaccount could have earned 5% on moneymarketable securities. Green incurs P576every time cash is transferred to this account.The optimum cash balance is A. 576,000.00B. 166,276.88C. 124,707.66D. 432,000.00
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 17 26 20 16 Sales on credit 120 140 110 90 On the average 52% of credit sales are paid for in the current month, 32% 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.)
A company’s beginning Cash balance was $8,000. At the end of the period, the balancewas $6,000. If total cash paid out during the period was $28,000, the amount of cashreceipts wasa. $34,000.b. $30,000.c. $26,000.d. $36,000.
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Hurzdan, Inc., has a 50-day average collection period and wants to maintain a minimum cash balance of $35 million, which is what the company currently has on hand. The company currently has a receivables balance of $189 million and has developed the following sales and cash disbursement budgets (in millions): Q2 Sales $450 Total cash disbursement 268 390 Beginning receivables Sales Cash collections Ending receivables Total cash collections Total cash disbursements Net cash inflow Beginning cash balance Net cash inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit) Q1 $378 Complete the following cash budget for the company. (A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and enter your answers in millions rounded to the nearest whole million dollar amount, e.g., 32.) + Q3 Q4 $531 $495 412 617 Q1 HURZDAN, INC. Cash Budget (in millions) 378 268 Q2 450 390 Q3 531 617 Q4 495 412
How is the beginning cash balance 410,925 in March?
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 • d. $13,000
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Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $100,000 September 185,000 October 225,000 The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating cash collections of accounts receivable for August, September, and October. For each month's sales on account, enter the collection months in chronological order. Trapp Co. Schedule of Collections of Accounts Receivable For Three Months Ending October 31, 20xX August September October August sales on account: Collected in August Collected in September September sales on account: Collected in September Collected in October October sales on account: Collected in October Totals
Given beginning cash of $100, budgeted cash collections of $10 and budgeted expenses of $40 ($10 in depreciation expense on manufacturing equipment and $30 of advertising expenses) and required minimum cash of $100, the company should Assume the company has to borrow in increments of ten dollars. borrow
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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.

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