Accumulating a growing future sum Personal Finance Problem A retirement home at Deer Trail Estates now costs $ 191 comma 000. Inflation is expected to cause this price to increase at 6​% per year over the 17 years before C. L. Donovan retires. If Donovan earns 9​% on his​ investments, ow large must an​ equal, end-of-year deposit must be to provide the cash needed to buy the home 17 years from​ now?

Answers

Answer 1

Answer: $13,910.42

Explanation:

The price of the house increases by 6% per year for 17 years.

The value at the end of 17 years is;

= 191,000 ( 1 + 6%) ¹⁷

= $514,319.60

Mr Donovan needs to deposit an amount per year at an interest rate of 9% that will earn him $514,319.60 at the end of 17 years.

This makes this an annuity which is calculated as;

Future Value of Annuity = Annuity (( 1 + rate )^ no. of periods - 1 ) / rate

514,319.60 = Annuity ((1 + 9%)¹⁷ - 1)/9%

514,319.60 = Annuity * 36.9737

Annuity = 514,319.60/36.9737

= $13,910.42


Related Questions

Explain the elements of managing, monitoring, and controllong project risk that would be important to you as a newly assigned project manager.

Answers

Answer:

Risk analysis is the management and control and assessment of risk to a firm.

Explanation:

A risk is a likelihood that a project will fall to meet its objectives. A project risk s a certain event or condition. Risk management focuses on identifying and assessing the risks of the project to minimize the impacts.  Some of the management tools to manage risks are to plan risk management, risk identification, perform a quantitative risk analysis. Risk audits, meetings, reserve analysis, variance, and trend analysis, etc. Compute the risk to the stakeholders and monitor and control the risks. Check for incidence and determine future outcomes.

Elite Company had originally expected to earn operating income of $140,000 in the coming year. Elite's degree of operating leverage is 2.6. Recently, Elite revised its plans and now expects to increase sales by 25% next year. What is the percent change in operating income expected by Elite in the coming year

Answers

Answer:

65%

Explanation:

The computation of the percentage change in operating income is shown below:

Degree of Operating leverage =  Percentage  change in operating income ÷ Percentage change in sales

2.6 = Percentage change in operating income ÷ 25%

So,

Percentage change in operating income is

= 2.6 × 25%

= 65%

We simply multiplied the degree of operating leverage with the percentage in sales so that the percentage change in operating income could come

Company C set up a Reserve for Bad Debts in 2013. Although there were no account balances written off, it was considered prudent to acknowledge that some of the Accounts Receivable would not be collectable. The IRS does not allow a deduction until the accounts are written off. As a result, the Taxable Income was greater than the Income Before Taxes.

This is a timing difference and will reverse in future years so it means that Taxable Income will be less than Income Before Taxes in some future years when the accounts written off will be greater than the increase in the Reserve for Bad Debts. What will be the entry required in 2013 to record this difference?

Answers

Answer:

Company C

Journal Entry to record the Difference in Taxable Income and Income before Taxes in 2013:

Debit Deferred Tax Asset $

Credit Income Tax Payable $

To record the deferred tax asset.

Explanation:

Since the taxable income is higher than the Income before Taxes, there is a deferred tax asset.

The amount is the tax rate multiplied by the difference in the two incomes.

A deferred tax asset  results from overpayment or advance payment of taxes due to timing differences.  It is the opposite of a deferred tax liability, which represents income taxes owed or underpayment of taxes as a result of the timing of transactions.

Timing differences arise from the treatment of Taxable Income by the tax authorities and the different treatment of Income before Taxes recognized in GAAP accounting.

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $15,000 $1,000 2 $ 8,000 $2,000 3 $2,500 4 $4,000 5 $5,000 6 $6,000 7 $5,000 8 $4,000 9 $3,000 10 $2,000 Required: 1. Determine the payback period of the investment. (Round your answer to 1 decimal place.)

Answers

Answer:

The payback period of the investment is 6.5 years

Explanation:

1. In order to calculate the payback period of the investment we would have to make the following calculation:

payback period of the investment=Year before full recovery+(Unrecovered cost at the  start/cash flow during the year )

payback period of the investment=6+  ($23,000−$20,500) /$5,000

payback period of the investment=6.5 Years

The payback period of the investment is 6.5 years

Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows (in thousands):
1. Customer service salaries $546,840.00
2. Insurance and property taxes 114,660.00
3. Distribution salaries 872,340.00
4. Marketing salaries 1,028,370.00
5. Engineer salaries 836,850.00
6. Warehouse wages 586,110.00
7. Equipment depreciation 183,792.00
8. Total $4,168,962.00
During January, the costs incurred in the Consumer Products Division were as follows:
1. Customer service salaries $602,350.00
2. Insurance and property taxes 110,240.00
3. Distribution salaries 861,200.00
4. Marketing salaries 1,085,230.00
5. Engineer salaries 820,008.00
6. Warehouse wages 562,632.00
7. Equipment depreciation 183,610.00
8. Total $4,225,270.00
Required:
1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. Enter all amounts as positive numbers.
Valotic Tech Inc.
Budget Performance Report—Director, Consumer Products Division
For the Month Ended January 31, 2016
1 Budget Actual Over Budget Under Budget
2 Customer service salaries
3 Insurance and property taxes
4 Distribution salaries
5 Marketing salaries
6 Engineer salaries
7 Warehouse wages
8 Equipment depreciation
9 Total
2. For which costs might the director be expected to request supplemental reports?

Answers

Answer:

Total Over budget = $112370

Total Under Budget= $ 56062

Explanation:

Valotic Tech Inc.

Budget Performance Report—Director, Consumer Products Division

For the Month Ended January 31, 2016

                                                 Budget          Actual       (Over) Under Budget

Customer service salaries   $546,840     $602,350         (55,510)

Insurance & property taxes    114,660        110,240             4420

Distribution salaries               872,340         861,200           11,140

Marketing salaries               1,028,370       1,085,230          (56,860)

Engineer salaries                 836,850          820,008         16842

Warehouse wages                586,110          562,632          23478

Equipment depreciation        183,792        183,610                182              

Total                                  $4,168,962      $4,225,270        (56308)      

Total Over budget = $112370

Total Under Budget= $ 56062

Over budget means that the amount is spent more than the amount budgeted.

The Customer service salaries and  Marketing salaries are over budgeted and the the director is expected to request supplemental reports of these to analyze where the amount has been overspent.

Which of the following is a community lifeline

Answers

Answer:

Safety and security

food, water, and shelter

health and medical

power and fuel

communications and transport

Explanation:

A lifeline allows business and government structures to continue to operate and is beneficial to human health and financial stability. Lifelines are perhaps the most important resources in the community that allow all other facets of society to work when balanced. The interconnected network of resources, services, and securities ( food, water, and shelter, medical care, communications facilities, etc) that provide lifeline services is used on a daily basis to facilitate the community's regularly occurring needs and give all other elements of society to perform efficiently.

Communications are the Community's lifeline. Safety and security, health and medical care, communications, hazardous materials, food, water, shelter, energy (power & fuel), and transportation are the seven community lifelines that FEMA has defined. Thus, option C is correct.

The Community Lifelines idea from the Federal Emergency Management Agency (FEMA) is a framework for event management that gives emergency managers a reporting system to swiftly stabilize a community after a disaster.

Safety and security, health and medical care, communications, hazardous materials, food, water, shelter, energy (power & fuel), and transportation are the seven community lifelines that FEMA has defined. It is a sign that lives are in danger, and daily routines and food chains are disturbed, if any of these Lifelines go down due to a disaster or emergency.

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Your question seems to be incomplete, but most probably the complete question was:

Which of the following is a community lifeline?

a. schools and churches

b. lumber and hardware

c. grocery and fast food

d. communications

Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $12.60 and the large kites would be $25.60. The variable cost per unit is $6.10 and $13.20, respectively. Jill, the owner, feels that she can sell 3,650 of the small kites and 2,015 of the large kites each year. The fixed costs would be $2,120 a year and the depreciation expense is $1,950. The tax rate is 34 percent. What is the annual operating cash flow

Answers

Answer:

Operating cash flow= $31,413.06

Explanation:

Giving the following information:

Small kites:

Selling price= $12.6

Unitary variable cost= $6.10

Sales= 3,650 units

Large kites:

Selling price= $25.6

Unitary variable cost= $13.2

Sales= 2,015 units

The fixed costs would be $2,120 a year and the depreciation expense is $1,950. The tax rate is 34 percent.

Sales= (3,650*12.6 + 2,015*25.6)= 97,574

Variable cost= (3,650*6.1 + 2,015*13.2)= (48,863)

Contribution margin= 48,711

Fixed costs= (2,120)

Depreciation= (1,950)

EBIT= 44,641

Tax= (44,641*0.34)= (15,177.94)

Depreciation= 1,950

Operating cash flow= $31,413.06

Tracy and Brett are married. Their current assets $9,243 Their current liabilities $6,921 Their monthly nondiscretionary expenses $4,693 Their annual combined income $70,000 Their annual debt payments (excluding monthly housing costs) $22,084 What is Tracy and Brett's emergency fund ratio in months

Answers

Answer:

1.3355

Explanation:

Current ratio = cash + cash equivalents ÷ current liabilities =$9,243 ÷ $6,921 =1.3355

Hope this helps & plz mark brainiest

$1.3355 is Tracy and Brett's emergency fund ratio in months. As Tracy and Brett are married. Their current assets $9,243 Their current liabilities $6,921 Their monthly nondiscretionary expenses $4,693.

What are current assets?

Current assets are all of a company's assets that are planned to be sold or used in the course of normal business operations during the course of the following year.

Current assets include things like cash, cash equivalents, receivables, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.

Current assets are items that a corporation utilizes, replaces, or turns into cash during a typical operating cycle. They are also known as short-term assets It sets them apart from long-term assets, or those that a company uses for longer than a year.

Thus, it is $1.3355.

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(a) Blossom Company retires its delivery equipment, which cost $45,890. Accumulated depreciation is also $45,890 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,400 instead of 45,890.

Answers

Answer: The answer has been attached

Explanation:

Here is the complete question:

Prepare journal entries to record these transactions:

(a) Blossom Company retires its delivery equipment, which cost $45,890. Accumulated depreciation is also $45,890 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,400 instead of 45,890

The journal entries has been prepared and attached. It should be noted that the loss on the sale of the equipment was calculated as:

= $45,890 - $37,400

= $8,490

Check the attachment for the journal entries.

A package delivery service uses vans and employees to deliver the maximum number of packages given a fixed budget. The last van added 600 packages to total output, while the last employee added 500 packages. If vans cost exist400 per week and employees earn exist300 per firm:________.
a. could deliver more packages with the same budget by using more employees and fewer Vans
b. could deliver more packages the same budget by using more vans and fewer with employees
c. use more vans and fewer employees because the last dollars spent on vans added more to total output than the last dollar spent on employees
d. is delivering the maximum number of packages given the fixed budget
e. both b and c

Answers

Answer: e. both b and c

Explanation:

Van delivered 600 per week and cost $400.

The cost per package for the Van is;

= 600/400

= $1.5 per package

Employees delivered 500 and cost $300 which means the cost per package is;

= 500/300

= $1.67 per package.

The results show that it costs more to deliver with Employees ($1.67) than with the Vans ($1.5). Using more Vans will therefore allow for more packages to be delivered using a fixed budget as the last dollar spent on Vans gave more output than the last dollar spent on Employees.

The dates of importance in connection with a cash dividend of $150,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date. If no entry is required, select "No Entry Required" and leave the amount boxes blank. Jan. 15 Feb. 15 Mar. 15

Answers

Answer:

The 3 dates of importance on Cash Dividends are the Date of Declaration, Date of Record, and Date of Payment.

The date of Declaration as inferred is the day the company announces the Dividend. There is an accounting entry for this.

The Date of Record is the day on which the company determines which shareholders are going to get dividends. There is no entry here.

The Date of payment is the day the dividends are disbursed. There is an accounting entry here.

Jan 15

DR Retained Earnings $150,000

CR Cash Dividends Payable $150,000

(To record declaration of Dividends)

Feb 15.

No entry

March 15

DR Cash Dividends Payable $150,000

CR Cash $150,000

(To record payment of Dividends).

The following transactions were completed by the company.
a. The owner (Alex Carr) invested $15,000 cash in the company in exchange for its common stock.
b. The company purchased supplies for $500 cash.
c. The company purchased $10,000 in equipment on credit (record liability as Note Payable).
d. The company purchased $200 of additional supplies on credit.
e. The company purchased land for $9,000 cash.
Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) cash supplies equipment land accounts payable notes payable common stock dividends revenue expenses

Answers

Answer:

a.

Assets : Increases (Cash)  $15,000

Liabilities : No Effect

Equity : Increases (Common Stock)  $15,000

b.

Assets : Decrease (Cash)  $500, Increase (Supplies)  $500

Liabilities : No Effect

Equity : No Effect

c.

Assets : Increases (Equipment)  $10,000

Liabilities : Increases (Note Payable)  $15,000

Equity : No Effect

d.

Assets : Increases (Supplies) $15,000

Liabilities :  Increases (Accounts Payable) $15,000

Equity : No Effect

e.

Assets : Increases (Land) $9,000, Decrease (Cash) $9,000

Liabilities : No Effect

Equity : No Effect

Explanation:

The Accounting Equation is : Assets = Equity + Liabilities

So first determine the accounts affected in each transaction and determine their category in the elements of Accounting Equation.

Finally indicate if the category is increasing or decreasing.

During the month of May, direct labor cost totaled $20,405 and direct labor cost was 55% of prime cost. If total manufacturing costs during May were $73,600, the manufacturing overhead was:

Answers

Answer:

$36,500

Explanation:

Calculation for manufacturing overhead

Direct labor = $20,405

The Total manufacturing cost = $73,600

Prime cost = Direct labour cost ÷0.55

Prime cost = $20,405 ÷ 0.55 =

Prime cost = $37,100

Using this formula for Tot Manufacturing cost

Total manufacturing cost = Prime cost + Manufacturing overhead cost

$73,600 = $37,100 + Manufacturing overhead cost

Manufacturing overhead cost = $36,500

Therefore tthe manufacturing overhead was:$36,500

According to Mikey, the founder, Holden Outerwear does not manufacture its garments in the United States because of the: aplicated procedure to acquire a manufacturing license. b.limited control over manufacturing partners. c.legal and political risks. d.high production costs.

Answers

Answer:

d

Explanation:

The complete question is mentioned in attachment. According to 2nd line and  2nd last line, option d is the ocrrect answer.

According to Mikey, the founder, Holden Outerwear does not manufacture its garments in the United States because of the: limited control over manufacturing partners. Therefore, the correct option is B.

The manufacturing in any place abroad brings many challenges in maintaining the same level of vigilance and control over the production processes as comparatively to having manufacturing processes in the company's home nation.

The offshore manufacturing mainly  involves working with third-party or manufacturing partners, which may bring problems and issues related to quality control, supply chain management, and communication.

Thus, the ideal selection is option B.

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The complete question might be:

According to Mikey, the founder, Holden Outerwear does not manufacture its garments in the United States because of the: a. aplicated procedure to acquire a manufacturing license. b.limited control over manufacturing partners. c.legal and political risks. d.high production costs.

Why are adjustments made to the accounting records at the end of the period? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Answers

Answer: a. To ensure assets and liabilities are reported at appropriate amounts.

b. To ensure the related revenues and expenses are reported in the proper period.

Explanation:

Adjustments must be made at the end of the period to make sure that the figures in the books are the proper and true reflection of the transactions that took place. That way records are neither overstated or understated thereby giving the users of the Accounting records a proper and accurate opportunity to assess the company's financial standing.

Records must also be adjusted to abide by the Accrual basis in accounting which posits that revenues and expenses should be recorded only in the periods when they occured regardless of if money has been received or paid for them. This way it is easier to match Expenses as well as Revenue to their respective periods.  

oe Smith, age 75, from Vienna, IL has the winning Powerball lottery numbers which will pay out $13 million at the beginning of each of the next 30 years (reported prize of $390 million). Before claiming his prize, Trusty Insurance Company offers Joe $200 million today in exchange for his winning lottery ticket and prize payout. What rate of return would Trusty Insurance earn if Joe accepts their offer?

Answers

Answer:

The IRR is 5%. Rate of return would be 12.5% assuming a discount rate of 4%

Explanation:

The answer depends entirely on the discount rate. The question covers a 30 period timeframe and in each period, the pay off is $13 million. This is a simple time value of money concept in which to calculate the present value, you will simply calculate the present value of each of the cash flows. The formula is 13Mn/[(1+r)^n] where n is the year from 1 to 30, r is the discount rate.

The question requires us to calculate the return that is the variable 'r'. For this you need to have the present value today so that you can then use the equation to solve for 'r'. However, the only information we have is the time period and the cash flow. We are given $200mn as the initial outlay. So, we can at least use this to calculate the internal rate of return (IRR) which is simply the rate of return (or the value of 'r') at which the present value of each of the 13 Mn to be received over the next 30 years is equal to the initial outlay (i.e 200mn). In short, IRR is the rate of return at which the net present value (NPV) is equal to zero. In our example, and using the formula for each of the cash flow from years 1 to 30, the IRR is computated at 5%. So if the discount rate that the company uses is less than 5%, the company would be better of with Joe accepting the offer because any discount rate below 5% would result in the present value of the cash flows to be in excess of $200Mn.

Lets take an example and assume that the discount rate is 4%, using the formula from year 1 to 30 and summing the values would give us a present value of $225 Mn. So the rate lf return in this case would be (225-200)/200 x 100 = 12.5%.

Astute managers are alert for the presence of these clues: disciplinary actions being challenged, employees questioning managerial decisions, employees talking more openly with managers.

Answers

Answer: False

Explanation:

Astute Managers are alert for clues and opportunities to bring the company more profit and productivity by leveraging on those opportunities.

They recognize when the winds of change are blowing in the industry and work to realign resources and employee orientation to take advantage of this.

Astute leaders do not look for ways to disparage their employees by looking for signs of insubordination to use it against employees but rather maintain good relationships with employees so that they may move the company forward together.

In Ricci v. DeStefano, Ricci, a white firefighter, took and passed the City of New Haven firefighter's test, required of all applicants for promotion in the city's fire department. The test was thrown out when it was discovered that minorities scored poorly and the city feared a disparate impact-based lawsuit. How did the court rule?
A) An employer may not simply disregard a test based on unwanted results unless the test is shown to be biased or deficient.
B) Even though the test was prepared by a professional testing organization, the city has the right to reject the test results if minorities do not score adequately
C) Deliberately oversampling minorities to seek to create a fair test is irrelevant if the test results show that minorities still scored poorly
D) Ricci, as a member of the white majority, had no grounds to sue when the city was seeking the legitimate aim of nondiscrimination

Answers

Answer:

The correct answer is A. In Ricci v. DeStefano, the Supreme Court ruled that an employer may not simply disregard a test based on unwanted results unless the test is shown to be biased or deficient.

Explanation:

Ricci v. DeStefano is a Supreme Court ruling of 2009, after a lawsuit by nineteen firefighters who claimed to have been discriminated against in terms of career development.  They denounced that they had been discriminated after having passed the admission tests and still had not been promoted, since no African-American candidate had passed the tests. They also denounced that they had not been promoted because the Fire Department did not want to promote a group of new recruits without including within it any member of racial minorities.

Finally, the Supreme Court established that said procedure violated Title VII of the Civil Rights Act of 1964, since in the case equal access to employment was not guaranteed (in this case, favoring minorities over white firefighters), for set different demands for purely racial reasons.

Hubert: Demand decreased, but it was perfectly inelastic. Kate: Demand decreased, but supply was perfectly inelastic. Manuel: Demand decreased, but supply increased at the same time. Poornima: Supply increased, but demand was perfectly inelastic. Shen: Supply increased, but demand was unit elastic. Who could possibly be right

Answers

The complete part of the question.

The price of coffee fell sharply last month, while the quantity sold remained the same. Five people suggest various explanations

Answer:

Kate, Manuel and Poornima

Explanation:

Given that, the price of coffee fell but the quantity sold remained the same.

1. Hubert: Demand decreased, but it was perfectly inelastic.

If an elastic demand shifts the demand curve will move to the left. This would cause both prices as well as quantity to decline. So HUBERT's statement is not correct.

2. Kate: Demand decreased, but supply was perfectly inelastic.

This can be true, because of the inelastic supply curve. If the supply curve is an inelastic vertical line then a fall in demand will not affect quantity while the price will fall. So, KATE's statement can be right.

3. Manuel: Demand decreased, but supply increased at the same time.

If there is a decrease in the demand curve, it will shift to the left. Now, if there is an increase in the supply by the same amount the price will fall but quantity will remain the same. So, MANUEL's statement is right.

4. Poornima: Supply increased, but demand was perfectly inelastic.

Here, the rightward shift in the supply curve will cause the price to fall but quantity will remain the same. So, POORNIMA's statement is right.

5. Shen: Supply increased, but demand was unit elastic.

if the demand curve is unitary elastic, an increase in supply will cause the price to fall and quantity to increase. So, SHEN's statement is not correct.

McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:
20Y5 20Y4
Retail $126,000 $120,000
Wholesale 150,000 164,000
Total revenue $276,000 $284,000
Prepare a horizontal analysis of the segments. Round percentages to one decimal place.

Answers

Answer:

                               Horizontal Analysis

                        For the years 20Y4 and 20Y5

                         20Y5        20Y4      Difference amount    Difference Percent

Retail                126000    120000          6000                       5.0%

Wholesale        150000    164000         -14000                     -8.5%

Total revenue   276000   284000        -8000                      -2.8%

Workings

Retail= 126000 - 120000 = 6000

6000/120000* 100 = 5.0%

Wholesale= 150000 - 164000 = -14000

-14000/164000 * 100 = 8.53%

Total revenue= 276000 - 284000 = -8000

-8000/284000 * 100 =2.82%

Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow.

July August September
Budgeted sales $54,000 $70,000 $58,000
Budgeted cash payments for
Direct material 15,160 12,440 12,760
Direct labor 3,040 2,360 2,440
Factory overhead 19,200 15,800 16,200

Sales are 15% cash and 85% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash: $44,000 in accounts receivable; $3,500 in accounts payable; and a $4,000 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($3,000 per month), and rent ($5,500 per month).

Required:

a. Prepare a cash receipts budget for July, August, and September.
b. Prepare a cash budget for each of the months of July, August, and September.

Answers

Answer:

Built-Tight

a) Cash Budget for July, August, and September:

                                        July            August       September    Total

Beginning balance         $15,000    $16,900     $28,700         $15,000

Cash collections:              52,100     56,400        68,200         176,700

Cash Expenses:

Direct materials               (15,160)    (12,440)        (12,760 )        (40,360)

Direct labor                      (3,040)     (2,360)          (2,440)          (7,840)

Factory overhead          (19,200)    (15,800)        (16,200)        (51,200)

Operating expenses:

Sales Commission         (5,400)      (7,000)         (5,800)         (18,200)

Rent Expense                (3,000)      (3,000)         (3,000)          (9,000)

Accounts Payable                           (4,000)                                (4,000)

Interest expense             (400)                                                     (400)

Loan repayment           (4,000)                                                 (4,000)

Minimum Balance        15,000       15,000         15,000

Excess Cash                $1,900      $13,700       $41,700       $56,700

Explanation:

a) Cash Collections:

                                    July            August         September    Total

Cash sales 15%       $8,100         $10,500         $8,700         $27,300

85% a month after 44,000          45,900         59,500         149,400

Total collections   $52,100        $56,400       $68,200      $176,700

b) It is assumed that the balance in accounts payable was paid in August when the company had enough balance to offset it.  Any other assumption could have been made.

c) A cash budget shows the cash receipts and payments made during the budget period.  As a budget, it shows the forecast for cash receipts and payments, which will help management to make decisions to avoid liquidity problems which can ruin a business.  Management is able to plan ahead for the business' expenditures and investments.  It also warns management to negotiate for loans to smoothen periods of cash shortages.

Critically analyze the difference and points of convergence between floor inspection and functional inspection

Answers

Answer:

Please refer to the below;

Explanation:

Difference between Floor inspection and Functional inspection.

• Floor inspection is usually conducted in a production environment. It involves checking of materials while processing in the machine by inspectors. Rather than checking the materials in the machine at the beginning of production, floor inspection checks the materials while in process inorder to ensure that the defected ones are quickly detected and expunged. It also ensure that the equipments used in processing are properly functioning.

• Functional inspection is an inspection that checks the overall function of a product rather than what makes up the component parts. For instance the load capacity and speed of a vehicle can be checked for optimal performance whereas individual parts that make up the vehicle are not checked, yet bring out satisfactory performance when combined together. This form of inspection is concerned with verification of final output and does not provide details about different sections instead provides a wider understanding of comfort that emanate from inspecting same item.

Points of Convergence between Floor inspection and Functional inspection.

• The key objective of both floor and functional inspection is quality output having reviewed and examined their expectations.

• Both floor and functional inspection work to prevent defective product from flowing down the successive operations and avoid loss to the company

• Both floor and functional inspection aim at meeting customers requirements, wants and needs.

Tory invested $600 a year for three years, then $700 a year for an additional four years. In year 9, she withdrew $1,500. She withdrew the entire investment in year 11. Which statement correctly applies to the time line for this problem

Answers

Answer:

Cash flows for the first 7 years are negative

Explanation:

When considering cash flows in a business activity or a transaction, it can either be positive or negative cash flow.

Negative cash flow is when the individual or business entity gives out cash to fund a business activity.

Positive cash flow is when cash flows inward from a business activity.

In this scenario Tory invested $600 in the first 3 years and an additional $700 for four years. Cash is going out so this is a negative cash flow within 7 years.

Tory withdrew $1,500 in year 9 and the rest of the investment in year 11. This is a positive cash flow.

Carlos had been thinking of setting up a graphic design service business for quite some time. He knew that he wanted to work at home and he now had several leads for prospective customers. He also knew how much money he needed to make to cover his expenses. He had several ways to approach his new business including working by himself or taking on a partner. Both ways needed more thought to determine what each would involve. In terms of the rational decision-making model, Carlos is in which of the following steps?A. Defining the situation.
B. Describing and collect needed information.
C. Develop alternatives.
D. Develop agreement among those involved.

Answers

Answer: Develop alternatives

Explanation:

From the question, we are informed that Carlos had been thinking of setting up a graphic design service and has several leads for prospective customers and also has different ways to approach his new business which. include either by working alone or having a partner and he is critically thinking to determine the best option.

This means that he is developing alternatives. He is looking at a range of options in order to choose the.best one that will help him achieve his objective. Alternatives should reflect the different ways to tackle a problem.

Average fixed cost is equal to a.total fixed cost divided by quantity. b.marginal cost minus average total cost. c.quantity divided by total fixed cost. d.the difference between average total cost and average variable cost. e.a and d

Answers

Answer:

e.a and d

Explanation:

Average fixed cost = Total fixed cost / quantity

Total cost is cost that does not vary with production e.g. rent

Average fixed cost is fixed cost per unit produced.

Average fixed cost = average total cost - average variable cost

I hope my answer helps you

The answer is e a and d

The manager of a certain division at Alpha Manufacturing is evaluated on how efficiently the division uses equipment, buildings, and other assets to generate profits. This division is considered a(n):

Answers

Answer:

Investment center

Explanation:

Investment center is a section of an organization that make use of the amount of capital at their disposal to earn more profit for the company. Their main aim is to generate more revenue for the organization.

This section of the company is solely responsible for the amount of money generated, the costs incurred during the production process and the various benefits realized.

They are accessed according to the amount of money brought into the company through various investments.

In the scenario described above, the manager of a particular section of Alpha manufacturing was evaluated on how the equipments, building and other assets were used to generate profit because they were considered as an investment center.

The manager of a particular section of Alpha manufacturing was evaluated on how the equipment, building, and other assets were used to generate profit because they were considered an investment center.

What is an investment center?

An investment center is part of an organization that uses its proceeds to maximize profits for a company. Their main goal is to make more money for the organization.

This category of the company is solely responsible for the amount of revenue generated, the costs incurred during the production process and the various benefits derived.

Thus, the division where the different assets are being used to generate profits is called the investment center.

To learn more about investment center, refer:

https://brainly.com/question/13998074

The following inventory balances have been provided for the most recent year: The cost of goods manufactured was $714,000. What was the cost of goods sold? Select one: a. $738,000 b. $693,000 c. $714,000 d. $733,000

Answers

Answer:

a. $738,000

Explanation:

Calculation for the cost of goods sold

Beginning Finished goods inventory $57,000

Add: Cost of goods manufactured $714,000

Goods available for sale $771,000

($714,000+$57,000)

Less Ending Finished goods inventory $33,000

Cost of goods sold $738,000

($771,000-$33,000)

Therefore the cost of goods sold will be $738,000

Indicate which of the following has an effect on financing cash flows.
a. Notes payable with a carrying value of $16,600 are retired for $18,400 cash, resulting in a $1,800 loss.
b. Paid cash dividends of $12,600 to common stockholders.
c. Acquired $21,600 worth of machinery in exchange for common stock.
Items Amount Effect on financing cash flows
a. Notes payable
b. Dividends
c. Machinery

Answers

Answer:

Item Amount Effect

A.Notes Payable ($16,600) Decrease

B.Dividends ($1,800) Decrease

C.Machinery $ 21,600 or $ 0 No effect

Explanation:

Indicating the items that has an effect on financing cash flows

Item Amount Effect

A.Notes Payable ($16,600) Decrease

Because the cash are repaid

B.Dividends ($1,800) Decrease

Because the Dividend are been paid out in cash

C.Machinery $ 21,600 or $ 0 No effect

No effect because it is a non cash activity.

Marcus is a self-employed marketing consultant. He is good at helping his clients with their marketing challenges; however, he is not keeping up with billing his clients regularly or keeping track of his hours. He feels like the time he spends on these functions is taking him away from activities where he has more talent and ability. His small business needs to bill clients quickly to keep the business running. What would you recommend that Marcus do

Answers

Answer:

outsource the accounting function to another firm

Explanation:

Based on this information regarding Marcus' situation, the best advice would be for him to outsource the accounting function to another firm. This is something that many individuals/companies do and will allow Marcus to focus all of his time and energy on what he is best at (which is helping his clients with their marketing challenges.) while at the same time making sure that the accounting tasks such as billing the clients are done quickly and correctly.

Zara, an HR manager at Fluxin LLC, is responsible for implementing a guided self-appraisal system using management by objectives in her organization. She has developed specific standards for performance. Which of the following is typically the next step for Zara?
a. Continuing performance discussions
b. Implementation of the performance standards
c. Setting of objectives
d. Job review and agreement

Answers

Answer:

The answer is option (c) Setting of objectives.

Explanation:

Solution

The next step for Zara to take from the given question is in the setting of objectives.

Setting of objectives : This is defined as a set of activity of setting objectives or goals for an organization.

In afterwords they are ends that explains specifically how the goals can be achieved or accomplished so they are quantitative in nature.

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