Key Concept Questions: Chapter 9

9-6. Create a cumulative cash flow graph for a business with the following monthly cash balances:

January	$40,000
February	$25,000
March	$13,000
April	$5,000
May	$12,000
June	$2,000
July	0
August	0
September	$1,500
October	$8,500
November	$12,000
December	$21,000

9-7. Fill in the following table, using the future value chart in this chapter, to show the amounts of one invested dollars growth at the interest rates and time periods given.

Periods	Interest Rate (%)	Future Value of $10
2	5	$11.03
5	8
10	10
1	1
7	3

9-8. Fill in the following table, using the present value chart, to show the amounts of the net present value of $100 at the interest rates and time periods given.

Periods	Interest Rate (%)	Present Value of $100
2	5	$90.79
5	8
10	10
1	1
7	3

9-9. Calculate working capital for Angelinas company. Describe how her level of working capital might affect her business decisions.

Angelinas Jewelry Company Balance Sheet July 30, 2014
ASSETS
Current Assets
Cash	$10,000
Inventory	10,000
Other Current Assets (Securities)	10,000
	$30,000
Total Current Assets		$30,000
Long-Term Assets		70,000
TOTAL ASSETS		$100,000
LIABILITIES
Short-Term Liabilities
Accounts Payable (AP)	$10,000
Short-Term Loans	5,000
Total Short-Term Liabilities		$15,000
Total Long-Term Liabilities		15,000
OWNERS EQUITY		70,000
TOTAL LIABILITIES + OWNERS EQUITY		$100,000