Use the data below to answer questions 57 and 58 A firm collects 25% of its...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the data below to answer questions 57 and 58 A firm collects 25% of its credit sale in the month of sale and the remainder in the following month. The credit sale for the month of June is GHC 150,000. It expects to pay bills of GHC22,000 in July. The depreciation for the month of July is GHC 1,000. 57. Calculate cash balance at the end of July. 58. If the company maintains an end of month cash balance of GHC 100,000, what is the external finance required? Use the data below to answer questions 57 and 58 A firm collects 25% of its credit sale in the month of sale and the remainder in the following month. The credit sale for the month of June is GHC 150,000. It expects to pay bills of GHC22,000 in July. The depreciation for the month of July is GHC 1,000. 57. Calculate cash balance at the end of July. 58. If the company maintains an end of month cash balance of GHC 100,000, what is the external finance required?
Expert Answer:
Answer rating: 100% (QA)
To calculate the cash balance at the end of July we need to consider the cash inflows and outflows f... View the full answer
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Posted Date:
Students also viewed these finance questions
-
If the perturbation H= ax where a is a constant, is added to infinite square well pop for 0
-
A bank agrees to lend 1300 now and X two years from now in exchange for a single repayment of 10,000 at the end of 7 years. The bank charges interest at an annual effective rate of 18.55% for the...
-
In your opinion, should text messaging be added to the list of promotion mix elements advertising, sales promotion, personal selling, public relations, and direct marketing? Why or why not?
-
Rare Earth Clothing is a retail store specializing in women's clothing. The store has established a liberal return policy for the holiday season in order to encourage gift purchases. Any item...
-
The following balance sheet is submitted to you for inspection and review. Appalachian Freight Company Balance Sheet December 31, 2011 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
A 30-year mortgage for $95,000 is issued at a 9% nominal interest rate. (a) What is the monthly payment? (b) How long does it take to pay off the mortgage, if $1000 per month is, paid? (c) How long...
-
The data in Table B. 5 present the performance of a chemical process as a function of several controllable process variables. a. Fit a multiple regression model relating $\mathrm{CO}_{2}$ product...
-
Why can undue emphasis on labor efficiency variances lead to excess work in process inventories?
-
Equity A has a higher standard deviation than equity B, but a lower CAPM-beta. Explain how you would explain this difference? Consider the following information in Table 3 for stocks A and B. Table...
-
On January 1, 2021, Acme Co. is considering purchasing a 40 percent ownership interest in PHC Co., a privately held enterprise, for $700,000. PHC predicts its profit will be $185,000 in 2021,...
-
Suppose you are the credit officer reviewing a credit proposal for a noncollateralized $10MM overdraft facility that is stated will be used to formalize an outstanding overdraft. What is our...
-
The following information was compiled by Kingbird Company: Expected volume of production 105,000 units Actual level of production 99,000 units Budgeted fixed overhead $210,000 Actual fixed overhead...
-
Tamarisk Industries has two divisions, the D division and the J division. Information about a component that the D division produces is as follows: Revenue $101 per unit Variable manufacturing costs...
-
b) Below is the scatter graph for "Any Company". Looking at the information below, estimate the cost formula in the "y = mx + b" format. The top right hand corner of the graph has given you a hint to...
-
On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as Its office headquarters. The building was completed on September 30, 2025. Expenditures on the...
-
Lie, Cheat and Steele are a successful Law Practice in Washington D.C. On January 1st 2023 they have the following balance sheet: Cash 50000 wages payable 30000 accounts rec 200,000 equipment 100,000...
-
Rin, who is single, contributed $1,500 to her Roth IRA for 2022. She had MAGI of $17,000 for 2022 and used the single filing status. She has never taken a distribution from a retirement plan. What is...
-
In Exercises, find the equation of the tangent line at the given point on each curve. 2y 2 - x = 4; (16, 2)
-
Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 1,000 shares at $51 per share with an initial margin of 40 percent. One year later, the stock is...
-
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 12 percent and 15 percent, respectively. The standard deviations of the assets are 29...
-
A put option with a strike price of $90 sells for $7.40. The option expires in two months, and the current stock price is $92. If the risk-free interest rate is 5 percent, what is the price of a call...
-
Give an example of a requirement on a computer printer.
-
Briefly describe the distinction between requirements and specification.
-
Give an example of a requirement on a digital still camera.
Study smarter with the SolutionInn App