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 2 decimal places.) |
Optimal upper cash limit | $ |
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 $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...
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?
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
I need help to solve for the right answers. Optimal Cash Transfer Barenbaum Industries projects that cash outlays of $4.7 million will occur uniformly throughout the year. Barenbaum plans to meet its cash requirements by periodically selling marketable securities from its portfolio. The firm's marketable securities are invested to earn 12 % , and the cost per transaction of converting securities to cash is $29. Assume a 365-day year. a. Use the Baumol model to determine the optimal transaction size...
Cash Budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: June July August Sales $160,000 $185,000 $200,000 Manufacturing costs 66,000 82,000 105,000 Selling and administrative expenses 40,000 46,000 51,000 Capital expenditures 120,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and...
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...
eBook Show Me How Calculator Printem 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 budget information: March April May Sales $125,000 $158,000 $210,000 Manufacturing costs 53,000 68,000 76,000 Selling and administrative expenses 36,000 43,000 46,000 Capital expenditures 50,000 The company expects to sell about 15% of its merchandise for cash of sales on account, 60% are expected to be collected in the month...
The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $114,000 $140,000 $189,000 Manufacturing costs 48,000 60,000 68,000 Selling and administrative expenses 40,000 42,000 72,000 Capital expenditures _ _ 45,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and...
Q. Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: Sales September October November $117,000 $140,000 $186,000 49,000 60,000 67,000 Manufacturing costs Selling and administrative expenses Capital expenditures 41,000 42,000 71,000 45,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and...
PLEASE SHOW ME HOW YOU CALCULATED ANSWERS. 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations. Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 Navember September October Estimated cash receipts from: Cash sales 11.400 14.700 18,100 Collection of accounts receivable Total cash recelpts...