Reference no: EM131235611
The ABC Company has made the following monthly estimates of cash receipts and cash disbursements when preparing cash budgets for the next twelve months. ABC has beginning cash on hand of $20,000 and wants to maintain this minimum cash level throughout the next year.
Cash Cash
Month Receipts Disbursements
January $100,000 $100,000
February $90,000 $110,000
March $80,000 $110,000
April $100,000 $150,000
May $120,000 $180,000
June $160,000 $180,000
July $200,000 $180,000
August $250,000 $180,000
September $250,000 $150,000
October $200,000 $110,000
November $140,000 $100,000
December $100,000 $100,000
A. Determine whether or not ABC will have a cash need during the next year.
B. If the company does need cash, in which month will it need the cash?
C. What is the most cash the company will need to borrow during the year (maximum amount borrowed in one month)?
D. Will the company have paid back all of its borrowings by the end of the year?
Demonstrate level of knowledge applicant actual skill level
: Team - Many applicants are not good test takers. While testing can and often does demonstrate a level of knowledge an applicant's actual skill level and ability to "fit in" aren't captured well by any type of test. Many employers prefer a situational..
|
Rate of return with annual compounding
: At what rate of return with annual compounding, would you be indifferent between Option A, a contract that pays $7,000 today, and Option B, a contract that pays $8,000 in 4 equal payments of $2,000
|
Interest rate with monthly payments
: If you buy a home for $189,000 and put 30% down and finance the rest with a 15-year amortized mortgage that has a 4.80% interest rate with monthly payments, how much interest will you pay over the entire life of the loan?
|
Entrepreneurs have to finance projects with credit cards
: What are the two possible reasons why entrepreneurs often have to finance their projects with credit cards, which can charge interest rates as high as 1,000 basis points above Treasury?
|
What is the most cash the company
: A. Determine whether or not ABC will have a cash need during the next year. B. If the company does need cash, in which month will it need the cash? C. What is the most cash the company will need to borrow during the year (maximum amount borrowed in o..
|
Contrast the consumer buying decision process
: Contrast the consumer buying decision process with the organizational buying process. Why is it difficult to generalize the process of business buying behavior? Relate the buying process model to organizational and individual needs. How do they chang..
|
What is the periodic current yield of the bond
: You have the following bond: Par value = 10,000, Coupon is 12%, semi-annually compounded, 20 year maturity, Nominal Market rate of interest is 11.25%. What is the periodic current yield of the bond in Period 20 (20 periods to maturity)
|
Reach objectives they have deemed important
: Leaders inspire and encourage their followers to reach objectives they have deemed important. The ability to empower others to reach these objectives is a key skill of a leader. Using the overview of transformational and transactional leadership prov..
|
What was the job completion rate of the system
: A distributed system has a print server with a printing speed of 60 pages per minute. The server was observed to print 500 pages over a 10-minute observation period. If each job prints five pages on the average, what was the job completion rate of..
|