Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $25,720 $24,945 Short-term investments (end of year) 8,200 9,420 Operating expenses 60,020 64,325 Depreciation expense 13,300 11,400 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year.
Answers
Answer:
The correct answer is 265 Days and 237 Days.
Explanation:
According to the scenario,m the computation of the given data are as follows:
First we calculate the Days cash on hand by using following formula:
Days cash on hand = Cash and cash equivalent ÷ [(operating expenses - Depreciation expense) ÷ 365 ]
So, For the year 20Y8
Days Cash on hand = ( $25,720 + $8,200) ÷ [( $60,020 - $13,300) ÷ 365]
= $33,920 ÷ 128
= 265 days
So, For the year 20Y9
Days Cash on hand = ( $24,945 + $9,420) ÷ [( $64,325 - $11,400) ÷ 365]
= $34,365 ÷ 145
= 237 days
Related Questions
An analyst gathers the following information about Meyer, Inc.: Meyer has 1,000 shares of 8% cumulative preferred stock outstanding, with a par value of $100 and liquidation value of $110. Meyer has 20,000 shares of common stock outstanding, with a par value of $20. Meyer had retained earnings at the beginning of the year of $5,000,000. Net income for the year was $70,000. This year, for the first time in its history, Meyer paid no dividends on preferred or common stock.What is the book value per share of Mayer's common stock?
Suppose the following statistics are available for the economy: CU = $60 billion RES = $100 billion DEP = $1000 billion (a) Calculate the size of the monetary base, the money supply, the reserve—deposit ratio, the currency—deposit ratio, and the money multiplier. (b) Suppose the currency—deposit ratio rises to .10, while the reserve—deposit ratio and monetary base remain unchanged. Calculate the money multiplier, the money supply, and the new values of CU, RES, and DEP.
Tell me tree critical risk that organization are likely to face in determination of requirement
To decrease the money supply, the Federal Reserve could a. decrease the required reserve ratio. b. conduct an open market purchase of U.S. Treasury securities. c. increase the discount rate. d. forbid the reselling of U.S. Treasury securities.
Answers
Answer:
warranty liability $ 130,000
Explanation:
the warrant liability will de clared based on sales volume and the expected warranty expenditures associate with sales.
This is done to match the expenses of the warranty with the period on which are generated. If don't further period will have expenditures which related to sales of prior periods.
Having said that we proceeds:
warranty liability:
15,000,000 x 1% = 150,000
warranty expenditures (20,000)
net 130,000
the company still spect this sales will generate additioal warranty expenditres for 130,000 dollars. this is a liability.
Final answer:
Based on an expected 1% of sales as warranty costs, Right Medical should report a warranty liability of $130,000 at year-end, subtracting the actual costs ($20,000) from the expected costs ($150,000).
Explanation:
The question revolves around estimating the warranty liability that Right Medical should report at the end of the year after introducing a new implant with a five-year warranty. Based on industry standards, warranty costs are expected to be 1% of sales. The company did indeed incur actual warranty expenditures of $20,000, however, the expectation based on sales would be $150,000 (1% of $15 million). Since the actual expenditures are lower than expected, the company should report the difference between the expected cost (calculated as 1% of sales) and the actual cost as the warranty liability. Therefore, Right Medical should report a liability of $150,000 - $20,000 = $130,000 at the end of the year.
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Answers
Answer:
$33,000
Explanation:
The calculation of the fixed cost and the variable cost per machine hour by using high low method is shown below:
Variable cost per hour = (High manufacturing overhead cost - low manufacturing overhead cost) ÷ (High machine hours - low machine hours)
= ($198,000 - $153,000) ÷ (110,000 hours - 80,000 hours)
= $45,000 ÷ 30,000 hours
= $1.5
Now the fixed cost is
= High manufacturing overhead cost - (High machine hours × Variable cost per hour)
= $198,000 - (110,000 hours × $1.5)
= $198,000 - $165,000
= $33,000
(B) cause
(C) place
(D) organization
Answers
Answer:
The correct answer is (A) event
Explanation:
Event marketing is a strategy that consists of giving memorable experiences to the consumers of a brand, in order to last in their memory. This type of activity aims to identify the brand and connect with it.
Thanks to these events, the company increases its brand recognition, improves the image, establishes strong relationships with customers, employees and suppliers.
Answers
Answer: $120,000
Explanation:
Depreciation is to be based on the cost of the asset being depreciated. In this scenario, the cost of the heavy duty drill press will be the Present Value of all the lease payments for the entire 10 years because it is said that the title will pass to Hernandez Inc. afterwards so the lease payments can be considered as payment.
Straight Line Amortisation =
Straight Line Amortisation =
Straight Line Amortisation = $120,000 per year
Answers
Answer:
operating income increase by 30,413 dollars
Explanation:
We will calculate the income as usuall revenues - expense
We aren't given with other manufacturing cost so we assume this are all the cost involved in the order:
Special Order Revenue: 230 trees at $160 each: 36,800
Special Order Cost:
mold cost: 5,000
variable cost: 230 trees x 6.03 dollars = 1,387
Total cost for the order: 6,387
Financial outcome: 36,800 - 6,387 = 30,413
Final answer:
The special order from the local shopping mall would increase the Faux Trees Company's operating income by $22,413.10.
Explanation:
To determine the change in the operating income due to this special order, we must first calculate the total revenue and total costs associated with the order. The total revenue can be calculated as the product of the offered price per tree ($160) and the number of trees ordered (230), which equals $36,800.
The total cost is the sum of the initial investment for the molds ($5000), plus the variable cost per tree ($6.03) multiplied by the number of trees (230), which equals $6386.90.
So, the change in operating income, or profit, due to this special order can be found by subtracting the total costs ($6386.90 + $5000) from the total revenue ($36800). In this case, the special order would increase the company's operating income by $22,413.10.
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Answers
Answer:
a. Expected rate of return = 10%
b. Expected rate of return = 12%
Explanation:
Using dividend growth model we have,
where P = Current market price
D = Dividend at the year end
K = Expected return
g = growth rate
Putting values in the above we have,
a. $64 =
=
K = 0.07 + 0.03 = 0.1 = 10%
b. $64 =
=
K = 0.07 + 0.05 = 0.12 = 12%
Final Answer
a. Expected rate of return = 10%
b. Expected rate of return = 12%
Final answer:
The expected rate of return on the stock with a dividend growth rate of 3% is 7.03%, and with a dividend growth rate of 5% it is 9.03%.
Explanation:
The expected rate of return of an investment in a stock can be reduced to a calculation involving the cost of the stock, the dividends expected to be paid, and the rate of growth of those dividends. The formula for the expected rate of return is:
Rate of Return = (Dividends one year from now / Current Stock Price) + Dividend Growth Rate
In the case of the stock you are analyzing:
- for a dividend growth rate of 3%, the formula becomes:
- Expected Rate of Return = ($4.50 / $64) + 0.03 = 7.03%
- for a dividend growth rate of 5%, the formula becomes:
- Expected Rate of Return = ($4.50 / $64) + 0.05 = 9.03%
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