Hollywood shoes would like to maintain their cash account at a minimum level of $56000, but...
Hollywood shoes would like to maintain their cash account at a minimum level of $56000, but expect the standard deviation in net daily cash flows to be $4600 the effective annual rate on marketable securities to be 6.25 percent per year, and the trading cost per sale or purchase of marketable securities to be $160 per transaction. What would be the optimal upper cash limit?
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Hollywood shoes would like to maintain their cash account at a
minimum level of $56000, but...
Hollywood Shoes would like to maintain their cash account at a minimum level of $69,000, but...
Hollywood Shoes would like to maintain their cash account at a minimum level of $69,000, but expect the standard deviation in net daily cash flows to be $5,900; the effective annual rate on marketable securities to be 7.00 percent per year; and the trading cost per sale or purchase of marketable securities to be $290 per transaction. What will be their optimal cash return point? (Round your answer to 2 decimal places.) a). $91,717.99 b). $74,900.00 c). $87,903.31 d). $103,437.46
HotFoot Shoes would like to maintain its cash account at a minimum level of $42,000 but expects the standard deviati...
HotFoot Shoes would like to maintain its cash account at a minimum level of $42,000 but expects the standard deviation in net daily cash flows to be $3,700, the effective annual rate on marketable securities to be 2.8 percent per year, and the trading cost per sale or purchase of marketable securities to be $370 per transaction. What will be its optimal upper cash limit? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to...
HotFoot Shoes would like to maintain its cash account at a minimum level of $30,000, but...
HotFoot Shoes would like to maintain its cash account at a minimum level of $30,000, but expects the standard deviation in net daily cash flows to be $4,500, the effective annual rate on marketable securities to be 7.0 percent per year, and the trading cost per sale or purchase of marketable securities to be $250 per transaction. What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to...
The controller of Dash Shoes Inc. instructs you to prepare a monthly cash budget for the next thr...
The controller of Dash Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budgetinformation: March April May Sales $129,000 $156,000 $206,000 Manufacturing costs 54,000 67,000 74,000 Selling and administrative expenses 37,000 42,000 45,000 Capital expenditures _ _ 49,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 65% are expected to be collected in the month following the sale and the...
Step 1 Read the scenario. Assume you are thinking about starting a business and would like to forecast your cash needs f...
Step 1 Read the scenario. Assume you are thinking about starting a business and would like to forecast your cash needs for the next six months. You expect sales to be approximately $30,000 per month for the first 12 months and your purchases to support sales will be approximately 60% of sales. You anticipate about 20% of your sales will be cash and 80% collected the following month. Your supplier has agreed to extend credit for 70 days at no...
Your answer is partially correct. Try again Danner Company expects to have a cash balance of...
Your answer is partially correct. Try again Danner Company expects to have a cash balance of $59,040 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $111,520, February $196,800. Payments for direct materials: January $65,600, February $98,400. Direct labor: January $39,360, February $59,040. Wages are paid in the month they are incurred Manufacturing overhead: January $27,552, February $32,800. These costs include depreciation of $1,968 per month. All...
Problem 21-4A (Part Level Submission) Colter Company prepares monthly cash budgets. Relevant data from operating budgets...
Problem 21-4A (Part Level Submission) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $403,200 134,400 100,000 78,400 88.480 February $448,000 140,000 112,000 84,000 95,200 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent...
CALCULATOR Problem 9-4A (Part Level Submission) (Video) Colter Company prepares monthly cash budgets. Relevant data from...
CALCULATOR Problem 9-4A (Part Level Submission) (Video) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $435,600 $484,000 Direct materials purchases 145,200 151,250 Direct labor 108,900 121,000 Manufacturing overhead Selling and administrative expenses 84,700 90,750 95,590 102,850 be 50% in the month of sale, 30% in the first month following the sale, and 20 % in the All sales are on account. Collections are expected sale. Sixty percent (60 %)...
108 CHAPTER 4 MANAGING WORKING CAPITAL AND CONTROLLING CASH ACCOUNT RECONCILIATION: A service provided by banks...
108 CHAPTER 4 MANAGING WORKING CAPITAL AND CONTROLLING CASH ACCOUNT RECONCILIATION: A service provided by banks whereby banks reconcile a business's cash accounts and create summary reconciliation reports. SWEEP ACCOUNTS: Accounts where banks automatically invest surplus cash balances in secure overnight accounts. Earnings are usually based on the federal funds traded rate, and the interest earned is credited daily. LOCKBOX: A service whereby banks assign customers a specially numbered P.O. box and collect and process payments on a daily basis....
1. Which of the following trades implies that ownership has been taken? a. Buying a futures...
1. Which of the following trades implies that ownership has been taken? a. Buying a futures contract. b. Selling a futures contract. c. Buying a stock. d. Shorting a stock. e. None of the above implies ownership. The following transactions are the only ones made during the first 4 days a futures contract trades. Answer question 2 based on this table. DAY TRANSACTION S O 1 A Long 30, B Short 30 2 A Long 55, C Short 55 3...
Your answer is partially correct. Try again Danner Company expects to have a cash balance of $59,040 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $111,520, February $196,800. Payments for direct materials: January $65,600, February $98,400. Direct labor: January $39,360, February $59,040. Wages are paid in the month they are incurred Manufacturing overhead: January $27,552, February $32,800. These costs include depreciation of $1,968 per month. All...
Problem 21-4A (Part Level Submission) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $403,200 134,400 100,000 78,400 88.480 February $448,000 140,000 112,000 84,000 95,200 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent...
CALCULATOR Problem 9-4A (Part Level Submission) (Video) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $435,600 $484,000 Direct materials purchases 145,200 151,250 Direct labor 108,900 121,000 Manufacturing overhead Selling and administrative expenses 84,700 90,750 95,590 102,850 be 50% in the month of sale, 30% in the first month following the sale, and 20 % in the All sales are on account. Collections are expected sale. Sixty percent (60 %)...
108 CHAPTER 4 MANAGING WORKING CAPITAL AND CONTROLLING CASH ACCOUNT RECONCILIATION: A service provided by banks whereby banks reconcile a business's cash accounts and create summary reconciliation reports. SWEEP ACCOUNTS: Accounts where banks automatically invest surplus cash balances in secure overnight accounts. Earnings are usually based on the federal funds traded rate, and the interest earned is credited daily. LOCKBOX: A service whereby banks assign customers a specially numbered P.O. box and collect and process payments on a daily basis....
1. Which of the following trades implies that ownership has been taken? a. Buying a futures contract. b. Selling a futures contract. c. Buying a stock. d. Shorting a stock. e. None of the above implies ownership. The following transactions are the only ones made during the first 4 days a futures contract trades. Answer question 2 based on this table. DAY TRANSACTION S O 1 A Long 30, B Short 30 2 A Long 55, C Short 55 3...
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