Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All credit accounts are collected in the following month. Assume the following sales: January February March April $ 82,000 72,000 117,000 62,000 Sales in December of the prior year were $92,000. Prepare a cash receipts schedule for January through April. Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts Eastern Auto Parts Inc. February January $ 80,000 $ March 81,000 $ April 106,000
Q: The cash price of a handphone is RM3,500. On an instalment plan, RM500 is required as a down payment…
A: Constant ratio formula With original balance outstanding (B), number of installments (n),…
Q: All rates in this question use semi-annual compounding. You observe a two year spot rate of 5.10%,…
A: Given: 2 year spot rate r2= 5.10% 1 year forward rate 2 years from now "f3" = 4.80% 3 year spot rate…
Q: What are the different types of expected return and related risk, for individual assets and for…
A: The different types of expected return and related risk, for individual assets and for portfolios as…
Q: Let’s pretend that we buy an annuity at the age of 70 with how much money we have in total from our…
A: Given: Value of the annuity “P” = $1368506.12 Interest rate = 5% Per month rate “r” = 5%/12 Number…
Q: c) Rita received an invoice dated 29 Mac 2021 with the amount of RM5,826 including transportation…
A: The companies gives discount to the customers based on the different criteria like volume , early…
Q: What is lease assignment? What is subletting? Explain at least one main difference between these…
A: In the world of finance in general and letting out of properties in particular the concepts of lease…
Q: To capture investor interest, Exchange Traded Funds (ETF) have become the latest market innovation.…
A:
Q: Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $55,000 is invested in Stock A…
A: Given: Total value =$100,000 Invested in stock A = $55,000 Stock A Beta = 0.75 Stock B beta = 1.79
Q: 4) Use this week's activity to write the formula for placing $300 in a 7.5% account compounded…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: A mother wishes to have Php800,000 eight years from today for her son’s graduation. How much should…
A: Future value (FV) = Php800,000 Monthly interest rate (r) = 0.0116666666666667 (i.e. 0.14 / 12)…
Q: 6. (Compounding using a calculator and annuities due) Carsten Bo, the Danisa Traditional Butter…
A: There is need of proper planning for retirement and if done at proper time and with proper planning…
Q: ou purchased some shares in Bandicoots R Us on 25 October 2022, at price $68.29. On 09 April 2023…
A: The selling price and dividends are the cash inflows while the purchase price is the cash outflow…
Q: A firm has sales of $1220, net income of $226, net fixed assets of $544 and current assets of $300.…
A: Common size statement value of inventory can be calculated by dividing inventory value by total…
Q: What does the book value of debt and equity refer to? O A. The par values of common stock and the…
A: The par value of stock is the price which is usually set at when the stock is issued. It is present…
Q: A bond, paying semi-annual coupons of 4% per annum, matures in 18 months time, and has a dirty price…
A: The overall rate of return given by a bond is referred to as its yield to maturity. It is the rate…
Q: An asset has values S(0) = 10 and S(1, 1) = 9 with up factor u = 1.1 and the return over one…
A: The no arbitrage rule is as follows:0< d< 1+r or R < u or 0 < π < 1 we are given S(1,…
Q: Develop an amortization schedule for the loan described. (All answers should be entered in dollars.…
A: Given: Loan (PV) $90,000 Interest rate 10% Years 2.5
Q: 4. Suppose our savings account ($937.33) pays us compound interest with monthly compounding.…
A: Compounding is related to earning interest on interest. The compounding interest is more beneficial…
Q: . 1. How can microfinance institutions maintain their social mission of helping the poor whiles…
A: Microfinance companies have main objective to help the poor person and lower income groups but they…
Q: Market Data Risk-Free Rate Alpha Beta Market Data Company Data Residual standard deviation, o(e)…
A: Risk adjusted measures are used to determine the reward an investor would get for taking that amount…
Q: A new operating system for an existing machine is expected to cost $250,000 and have a useful life…
A: Given, Investment A and Investment B
Q: Question: Should I make the investment in this property based on the information have given? Use the…
A: IRR refers to the internal rate of return. It is that rate at which the NPV (net present value)…
Q: According to the tax legislation, there are two main types of tax statuses regulated on the basis of…
A: Data given: Income Scales (TRY) Rate (%) Up to 14,800 15 14,801 - 34,000 20…
Q: In 6 years Dawn wants her current savings of $3700 to grow to $7300? What per annum rate, compounded…
A: Current saving (P0) = $3700 Future value after 6 years (FV) = $7300 Annual rate (r) = ? Period (p) =…
Q: In a company, the development and project team faced two opportunities, and evaluated each…
A: First let us calculate the weighted scores of opportunity A and B given the weights in each…
Q: Upper Division of Lower Company acquired an asset with a cost of $620,000 and a four-year life. The…
A: Working Note #1 Cost of assets will increase by 10% every year Year Cost of Assets(Formula)…
Q: You purchased some shares in Flying Dutchman.com on 12 August 2022, at price $67.41. On 09 November…
A: Given, The purchase price is $67.41 The dividends paid are $2.85 and $1.08.
Q: How far away is the horizon date? The terminal, or horizon, date is infinity since common stocks do…
A: We can use the dividend discount model here. As per the dividend discount model the value of a stock…
Q: GBATT has a capital need of $100 million to fund its operations. GBATT has an equity investor that…
A: Cost of capital refers to the amount of capital fund maintained as a portfolio of equity and debt.…
Q: Why do equity investors often use borrowed funds? Explain positive and negative financial leverage…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: compute the discounted payback statistic for Project X and recommend whether the firm should accept…
A: Discounted payback period shows that how long it will take to recoup an investment using present…
Q: The following data represents the prices (in R) of 50 items purchased by a shopper. Price (R)…
A: Mean, median, and mode A data set's mean (average) is calculated by adding all of the numbers in the…
Q: Consider a put option on a stock that currently sells for £100, but may rise to £120 or fall to £80…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Makhado Limited has a target capital structure of 60% equity and 40% debt. The before-tax cost of…
A: Weighted average cost of capital is very important from point of view of the capital decision making…
Q: How long will it take for P 1,000.00 to amount to P 1,346.00 if invested at 6 compounded quarterly?
A: Interest is the amount charged or received by investing or borrowing some amount. It can be simple…
Q: Describe how the Admati and Pfleiderer (1988) model differs from the Kyle (1985) model of equity…
A: An equity market is referred as the place, where the shares as well as stocks of the corporation is…
Q: mining company is considering two different projects. Determine which project is a better choice at…
A: Internal rate of return is the discount rate at which present value of cash flow is equal to initial…
Q: A debt of ₱75,000 was paid for as follows: ₱15,000 at the end of 18 months, ₱25000 at the end of 24…
A: Equation of value : It is a concept where a sum of money has different values at different times.…
Q: If BMWshares are now trading at 50 euros and expectations are that annual dividends into the…
A: The efficient market hypothesis will be advocating for full and complete discounting of adequately…
Q: please choose an Exchange Traded Fund (ETF) and discuss the characteristics of this ETF. Pick any…
A: The chosen ETF is SPDR S&P 500 ETF Trust SPDR stands for Standard & Poor Depositary Receipts…
Q: Matthew purchased a house for $400,000. She made a down payment the value of the house and received…
A: Loans are to be paid by the equal monthly payments and these are fixed payments during the life of…
Q: Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has…
A: Bond 1: Annual coupon rate = 8% Semi-annual rate = 8%/2 = 4% Dirty price “P” = $99.49 Let Face Value…
Q: Assume that you are a consultant to Broske Inc., and you have been provided with the following data:…
A: Next dividend (D1) = $0.80 Current price (P0) = $32.50 Growth rate (G) = 8.00% Formula Cost of…
Q: Using the macroeconomic environment of a bank explain the effect on margin. Provide an example of…
A: Margin is referred to as the type of deposit that an investor uses to place with their broker at the…
Q: the price process for the S&P/T 90, interest rates = 5% and pays no dividends. stock index has u =…
A: Binomial tree is very important concept in the call option and put option pricing and this is very…
Q: Greater role assumed by government in bailing out financial intermediaries – too big to fail…
A: Financial intermediary is referred as the institution or an individual, which act as a middleman…
Q: today, so the stock is less likely to How much net premium lignoring commissions) does the client…
A: A collar consists of buying a put option and selling a call option to hedge from large losses. Now…
Q: 14-12. If you are trying to build credit by using a credit card, each time you make a purchase with…
A: Average daily balance method is used to calculate the finance charge on the amount owed to the…
Q: Under what conditions would you recommend using each of these funding methods to pay for information…
A: Funding is referred as an act of providing the resources for financing the requirement, projects, or…
Q: ou have invested 7 million dollars for a horizon of 24 months. You will be paid interest at 7.80%…
A: Future value refers to the value of the current asset on some future date based on the growth…
Step by step
Solved in 3 steps with 2 images
- Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
- Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?My Aunts Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March?Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
- Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale, 30% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in January and February?All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.
- On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is attempting to project cash receipts and disbursements through April 30. On May 1, a note payable of 10,000 will be due. This amount was borrowed on January 1 to carry the company through its first four months of operation. The unit purchase cost of the companys single product, a box of Sweet Pleasures chocolates, is 12. The unit sales price is 28. Projected purchases and sales in units for the first four months are: Sales terms call for a 5% discount if paid within the same month that the sale occurred. It is expected that 50% of the billings will be collected within the discount period, 25% by the end of the month after purchase, 19% in the following month, and 6% will be uncollectible. Approximately 60% of the purchases are paid for in the month purchased. The rest are due and payable in the next month. Total fixed marketing and administrative expenses for each month include cash expenses of 5,000 and depreciation on equipment of 2,000. Variable marketing and administrative expenses total 6 per unit sold. All marketing and administrative expenses are paid as incurred. REQUIREMENT You have been asked to prepare a cash budget for the next four months to see if the loan can be repaid. Review the worksheet CASHBUD that follows these requirements. The problem data have already been entered in the Data Section of the worksheet.Eastern Auto Parts Inc. has 20 percent of its sales paid for in cash and 80 percent on credit. All credit accounts are collected in the following month. Assume the following sales: January $ 78,000 February 68,000 March 113,000 April 58,000 Sales in December of the prior year were $88,000.Prepare a cash receipts schedule for January through April. Eastern Auto Parts Inc. January February March April Sales Cash receipts: Cash sales Prior month's credit salesTotal cash receipts$0$76,000$77,000$102,000Marlin Company projects the follwoing sales for the first thre months of the year: $11500 in January; $10100 in February and $10400 in March. the company expects 60% of the sales to be cash and the remainder on accounts. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Account Receivable account has a zero on January. 1. Prepare a schedule of cash receipts for Marlin for January, February and March. What is the balance in Accounts Receivable on March 31? 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 70% in the month of the sale, 20% in the following month of the sale and 10% in the second month of the sale. What is the balance in Accounts Receivable on March 31?