subject
Business, 11.11.2019 21:31 davidleew24

The next three questions are based on the following information: copland supplies company is a retail store that purchases merchandizes from several makers of office equipment. actual balance sheet is presented below: balance sheet as of september 30, 2018 cash $25,000 accounts receivable (net of allowance for uncollectible accounts) $70,000 $79,625 $1,225,375 inventory property plant equipment (net of $640,000 accumulated depreciation) total assets accounts payable common stock retained earnings total liabilities and stockholders' equity $1,400,000 $170,000 $1,050,000 $180,000 $1,400,000 | to prepare budgets, the budget officer gathered addition budget data: sales are budgeted at $350,000, $260,000, and $230,000, all on credit, for october, november, and december, respectively.

• the company will declare $15,000 dividend in october, which will be paid in november.
• collections are expected to be 55% in the month of sale, 40% in the month following the sale, and 5% uncollectible. copland supplies recognizes bad debt expenses in the month sales are made.
• the cost of goods sold is 65% of sales.
• the ending merchandise inventory should be 35% of the following month sales needs.
• payment for merchandise purchases is expected to be 60% in the month of purchase with the remaining paid in the following month.
• monthly selling and administrative expenses to be paid in cash are $32,000.
• monthly depreciation is $20,000.

in addition to the information given above, assume copland supplies requires $30,000 minimum cash balance. cash can be borrowed at any exact amount at the beginning of each month from company's credit line at a local bank. interest, 2% monthly, are paid at the end of each month. determine total amount of cash copland supplies needs to borrow from the bank for the month october:

a. $68,715
b. $38,715
c. $30,000
d $70,118
e. none of the above

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 20:20, bisolad64
Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. income reported on the income statement for the year was $180,000. exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
Answers: 2
image
Business, 21.06.2019 21:30, Ayomide19
Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."
Answers: 2
image
Business, 21.06.2019 23:30, gwendallinesikes
Select the correct answer. the word intestate means that a person has died with or without a will?
Answers: 1
image
Business, 22.06.2019 04:30, hannahkelly3618
Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). however, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). what is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? the interest rate is 9 percent. use appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods. to find the future value of an annuity due when using the appendix tables, add 1 to n and subtract 1 from the tabular value. for example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to appendix c for n = 6 and i = 10 percent. look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716)
Answers: 2
You know the right answer?
The next three questions are based on the following information: copland supplies company is a reta...

Questions in other subjects:

Konu
Mathematics, 06.02.2021 05:40
Konu
Mathematics, 06.02.2021 05:40