Meals for the Homeless usually experiences seasonality in its cash balances. In December, contributions from donors increase its cash balances, and then these balances are used throughout the following year. By the fall, Meals for the Homeless has a tight cash flow. It has a line of credit with its bank, which allows it to draw up to $500,000 at 7 percent interest per year. During 2013, Meals for the Homeless draws down $135,000 on October 1 and repays it at the start of business on January 3, 2014—exactly 94 days later. How much should it pay back on January 3, and how much of that is interest?
Answer to relevant QuestionsMeals for the Homeless has many sources of income, but they pay Meals very differently. Specifically, Meals has contracts with the city, county, and state to pro-vide food services. In addition, Meals has contracted with a ...Discuss the four main elements of the Institute of Management Accountants’ code of ethics. We-Rescue-Dogs Kennel had a labor cost budget of $ 100,000 for the year. It expected its staff costs related to grooming, feeding, walking, and so on to vary in direct proportion with the number of dogs, based on an hourly ...What are some common causes of variances?The Mead Meals on Wheels Center (MMWC) provides meals every day to the homebound elderly. The city of Wabash pays MMWC $ 32 per week for each person it serves. There is no shortage of demand for MMWC’s services among the ...
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