3.1.10 Cash Budget The cash budget is “an estimation of the cash inflows and outflows for a business for a specific period of time. Cash budget are used to assess whether the entity has sufficient cash to fulfil regular operations and whether too much cash is being left in unproductive capacities”. (Reference 2) The cash budget is prepared in advance for the first 6 months, and a cash deficit of £20,364 and £2,228 were incurred in January and February. A second-hand bottling plant was purchased in January which cost £420,000. The business required £30,000 cash for working capital.
We will put down $3000 each and the rest will be donations from friends and family. Our fixed assets are for continuing use, which is, office space, airline discounts and other fixed assets like office equipments and accessories and utility bills like electricity. Our variable costs will change because of the different activities of the business dealing with labor and advertising. Below we have our cash flow projection for the next five years. We estimated how many customers we need to breakeven each year.
What will the monthly break even point in the number of passenger cars? 54 Contribution Margin 120 Break even point in passengers 26250 Train cars (rounded) 486.1111111 Rounded 486 d. Contribution Margin= $70 Break even point in passenger 45000 Train Cars= 45,000/ 63 714.2 Rounded 714 e. How many passengers per month are needed to generate an after tax profit of $750,000 Contribution Margin= $205-$85 $120.00 After tax= $750,000/ .70 1071428.57 Number of Passengers $205- $85 = $1,071.429 + $3,600,000 $120 = 4671429 38928.57 Number of Passengers Rounded 38929 f. Number of discounted seats Contribution Margin= $120 - $70 $50 Passenger seats= 90 X.80 72 Train Cars= 72 X $ 50 X 50 $180,000 Train cars per day x
The following costs were incurred in the first processing department during the month: The ending inventory was 90% complete with respect to materials and 45% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. 8. award: 1 out of 1.00 point How many units are in ending work in process inventory in the first processing department at the end of the month?
The carrier unit handled the reseller’s accounts that leased and bought large amount of time from MCI and then resold to their own direct customers. According to Pavlo, “MCI started changing their point of view with accounts receivables exceeding the ninety days as the bad debt percentage increased significantly. Pavlo explained that it will take MCI almost sixty days to bill a reseller and then had to wait fifteen more days
Based on the assumptions contained in this plan, I estimate that the businesses will break-even in its first year of operations. Cash Flow Statement As the owner of Chagadama Christian Bookstore, I will invest $60,000. This money will be used to cover startup costs of $12,725 and initial operating costs. Fixed costs are limited to our office space and equipment lease at $1,800 per month, which includes a 1,000 square foot store on Main Street, a telephone system, and two photocopiers. As continued positive cash flows permit, the amounts I invested will be repaid.
A.cash B.unsecured loans C.time deposits D.U.S. government securities Question 12 of 20 5.0 Points Identify and describe the factors, in addition to supply and demand, that determine interest rates. Question 13 of 20 5.0 Points You need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer.
The plan is amended by the company, a move which causes a decrease in the projected benefit obligation. 23. The Aberdeen Company maintains a defined benefit pension plan for its employees. On January 1, Year Four, this pension plan is amended so that employees can retire at the age of 64 rather than 65. As a result of this decision, the projected benefit obligation on that date increases by $2 million.
A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Thursday is a. debit Salaries Payable, $16,000; credit Cash, $16,000 b. debit Salary Expense, $16,000; credit Dividends, $16,000 c. debit Salary Expense, $16,000; credit Salaries Payable, $16,000 d. debit Drawing, $16,000; credit Cash, $16,000 ANS: C DIF: Difficult OBJ: 03-02 NAT: AACSB Analytic | AICPA FN-Measurement 34. The balance in the prepaid insurance account before adjustment at the end of the year is $10,000. If the additional data for the adjusting entry is (1) "the amount of insurance expired during the year is $8,500," as compared to additional data stating (2) "the amount of unexpired insurance applicable to a future period is $1,500," for the adjusting entry: a. the debit and credit amount for (1) would be the same as (2) but the accounts would be different b. the accounts for (1) would be the same as the accounts for (2) but the amounts would be different c. the accounts and amounts would be the same for both (1) and (2) d. there is not enough information given to determine the correct accounts and amounts ANS: C DIF: Difficult OBJ: 03-02 NAT: AACSB Analytic | AICPA
We shoot on location about half of the week. We work on a studio lot for about three days a week, and then we work up in a location spot that's about a 45 minute drive away. Twenty Exchange Place, the conversion of a 1931 54 story skyscraper from office to rental by Metro Lofts, drew fashionable singles to the area. Studios start at $2,250. The Setai, a conversion of an office building to a luxury condominium, has recently hit its sales stride after a sour real estate market with some homes selling for as much as $1,200 per square foot.. What on earth would possess you to be so mind boggingly stupid?