Given the following cost expenditures for a commercial remodeling project, calculate the peak financial requirement (maximum...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Given the following cost expenditures for a commercial remodeling project, calculate the peak financial requirement (maximum overdraft), the monthly overdrafts, and the financial requirements in each month by completing the table. Assume an 10% markup. Retainage is 7.5% for the first half of the project work schedule. The finance charge is 2% per month. Payments are billed at the end of the month and are received one month later. Draw the overdraft profile, total costs, and payment on the same figure in the space provided. (12 pts) Month 2 3 Direct Cost 9000 15000 12000 6000 Indirect Cost 2000 2000 2000 2000 month 1 (out) (in] 2 (in) (in) 4 (in) (in) direct cost indirect cost total cost markup total billed retainage withheld payment received total cost to date total billed to date total pald to date overdraft interest on overdraft total financed amount Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 -$10,000 -$20,000 -$30,000 -$40,000 Given the following cost expenditures for a commercial remodeling project, calculate the peak financial requirement (maximum overdraft), the monthly overdrafts, and the financial requirements in each month by completing the table. Assume an 10% markup. Retainage is 7.5% for the first half of the project work schedule. The finance charge is 2% per month. Payments are billed at the end of the month and are received one month later. Draw the overdraft profile, total costs, and payment on the same figure in the space provided. (12 pts) Month 2 3 Direct Cost 9000 15000 12000 6000 Indirect Cost 2000 2000 2000 2000 month 1 (out) (in] 2 (in) (in) 4 (in) (in) direct cost indirect cost total cost markup total billed retainage withheld payment received total cost to date total billed to date total pald to date overdraft interest on overdraft total financed amount Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 -$10,000 -$20,000 -$30,000 -$40,000
Expert Answer:
Answer rating: 100% (QA)
Month 1 2 3 4 5 Direct Cost 9000 15000 12000 6000 I... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Given the following cost table for an assignment problem, determine the optimal assignment and compute total minimumcost: 6942 C-8144 B-2571 0923 er-1234
-
Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs per month. Round variable cost per unit to two decimal...
-
Given the following cost information, solve for the optimal transportation cost: (Use MODI Method) Plant Cost of transporting 1 load to Plant Project A Project B Project C Project D Project E Project...
-
The Fisher Apparel Company balance sheet for the year ended 2006 is as follows: a. What is Fisher's investment in current assets? b. Determine Fisher's working capital investment. c. Determine...
-
As the struggling owner of a new restaurant, you suffer from a habitual shortage of cash. Yesterday the following invoices arrived: 1. Write out the exact meaning of each of the terms. 2. You can...
-
Nestl S. A. has American Depository Receipts listed on the Nasdaq over-the-counter market. Many ADRs listed on U.S. exchanges are for fractional shares. In the case of Nestl, 20 ADRs are equal to one...
-
Explain how the method of instrumental variables can be used to estimate the compensating differential associated with employer-provided health benefits.
-
New Jersey Valve Company manufactured 7,800 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following: Direct labor ..............40, 100...
-
Westgaard Incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In March, the company completed job G87M that...
-
Weston Products manufactures an industrial cleaning compound that goes through three processing departments-Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the...
-
Mobile computing has dramatically changed how information is accessed and shared. Wireless networking has been an enabler of mobile computing. One profession that mobile computing has had a big...
-
You measure the intensity of a sound wave to be \(5.70 \mathrm{~W} / \mathrm{m}^{2}\). If the power output of the signal is \(90 \mathrm{~W}\) and the signal is emitted in all directions, how far...
-
The unit of horsepower was defined by considering the power output of a typical horse. Working-horse guidelines in the \(1900 \mathrm{~s}\) called for them to pull with a force equal to \(10 \%\) of...
-
A hole is drilled through the narrow end of a \(0.960-\mathrm{kg}\) baseball bat, and the bat is hung on a nail so that it can swing freely (Figure P15.85). The bat is \(0.860 \mathrm{~m}\) long, the...
-
A radio station has a power output of \(140 \mathrm{~W}\) and is located \(1.5 \mathrm{~km}\) from your house. The radio signal is emitted uniformly in all directions. What is the intensity \(I\) of...
-
In physics lab, you are measuring the period of a vertically hung spring-ball system in which the mass of the ball is \(0.50 \mathrm{~kg}\). As the system oscillates up and down, it also swings from...
-
??????? know that the present value of the entire stream is \( \$ 32,911.03 \), and the discount rate is \( 4 \% \). What is the amount of the missing cash flow in year 3 ? The amount of the missing...
-
In Exercises 1-2, rewrite each verbal statement as an equation. Then decide whether the statement is true or false. Justify your answer. 1. The logarithm of the difference of two numbers is equal to...
-
The Grady Tire Company recaps tires. The weekly fixed cost is $2,500, and the variable cost per tire is $9. Price is related to demand, according to the following linear equation: v = 200 - 4.75p...
-
The Miramar Company in Problem 18 is considering contracting with a market research firm to do a survey to determine future market conditions. The results of the survey will indicate either positive...
-
Reconstruct the example problem at the end of this chapter as an AOA network. Assume that the most likely times (m) are the normal activity times and that the optimistic times (a) are the activity...
-
We are interested to produce $P$ in the reaction $A ightarrow P$ using a continuous reactor at $v=240$ liters/ hr with $C_{A_{0}}=3$ moles/liter. However, it is noticed that there is a second...
-
For installation and operation of a pipeline for an incompressible fluid, the total cost (in dollars per year) can be represented as follows: \[C=C_{1} D^{1.5} L+C_{2} m \Delta p / ho\] where...
-
An oil refinery has three process plants, and four grades of motor oil have been produced from these plants. The refinery is liable to meet the demand of customers. The refinery incurs a penalty for...
Study smarter with the SolutionInn App