Business, 31.12.2019 05:31 Lindsay882

craftco, inc.'s projected sales for the first six months of 2012 are given below: jan. $500,000 april $490,000 feb. $740,000 may $740,000 mar. $380,000 june $610,000 40% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale. cost of goods sold is 60% of sales. purchases are made in the month prior to the sales, and payments for purchases are made in the month of the sale. total other cash expenses are $40,000/month. the company's cash balance as of february 28, 2012 will be $25,000. excess cash will be used to retire shortminus−term borrowing (if any). craftco, inc. has no short term borrowing as of february 28, 2012 assume that the interest rate on shortminus−term borrowing is 1% per month. the company must have a minimum cash balance of $15,000 at the beginning of each month. what is craftco, inc.'s total cash disbursements for april 2012?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 16:30, 22katelynfrankouqqrb

The movement of an economy from one condition to another and back again

Answers: 2

continue

Business, 21.06.2019 23:00, kaylaunderwood470

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u. s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporationsâ€™ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

Answers: 3

continue

Business, 22.06.2019 15:20, amulets5239

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.

Answers: 3

continue

Business, 22.06.2019 19:50, Salas1333

Which of the following would create the most money? the initial deposit is $6,500 and the required reserve ratio is 20 percent. the initial deposit is $3,000 and the required reserve ratio is 10 percent. the initial deposit is $7,500 and the required reserve ratio is 25 percent. the initial deposit is $4,500 and the required reserve ratio is 15 percent.

Answers: 1

continue

You know the right answer?

craftco, inc.'s projected sales for the first six months of 2012 are given below: jan. $500,000 apr...